South Korean crypto boss to be extradited to U.S. over multibillion-dollar fraud
A Montenegro court has approved the extradition of Do Kwon, the co-founder of Terraform Labs based in South Korea, to the United States over the collapse of two digital tokens: TerraUSD and Luna.
The cryptocurrency entrepreneur is alleged to have committed fraud, which caused innocent investors to lose about $40 billion of their funds when TerraUSD and Luna collapsed in May 2022.
The country’s Ministry of Justice, in a statement, said, “The Minister of Justice, Bojan Bozovic, issued a decision approving the extradition of the accused, Kwon Do Hyung, to the United States of America.”
“It was concluded that the majority of the criteria prescribed by law favour the extradition request from the competent authorities of the United States of America,” it added.
According to the ministry, Mr Kwon had earlier agreed to be extradited to both South Korea and the U.S.
The court made the decision after 18 months of rulings and reversals due to Montenegro not having extradition treaties with the U.S. or South Korea, both of which have been contending to secure Mr Kwon’s extradition for months.
Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, had, in a statement in February, said Mr Kwon and his company were charged with “orchestrating a multi-billion dollar crypto asset securities fraud.”
According to the charge, Mr Kwon falsely claimed to investors that their tokens would increase in value while misleading them about the stability of TerraUSD.
“Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for Luna and TerraUSD,” the charge stated.
Mr Kwon’s arrest and subsequent extradition came after Interpol, in September 2022, issued a “red notice” warrant for his arrest.
The businessman was said to have been in Singapore when his business collapsed before he fled to Serbia. He was later arrested in Montenegro in March 2023 as he attempted to board a flight to Dubai at Podgorica Airport in Montenegro.
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
States
Independence: NBA urges Nigerians to expect better future
The NBA said that ordinary Nigerians should be deriving benefit from the subsidy removal rather than hardship.
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
States
NDPHC begins project to end 15-year blackout in Kaduna community
Mr Agim said the Rigasa project underscored NDPHC’s commitment to extending critical electricity infrastructure beyond generation.
Politics
Nigerians are happy with Tinubu’s leadership; he has earned their support: APC Chairman
Mr Yilwatda said the APC was proud to present what he described as the most competent and credible presidential candidate.
States
Gunmen kill woman, injure two farmers in Plateau
The victims were attacked while harvesting groundnuts at their farms in the village.
Politics
2027: Shettima, Uba Sani rally support for Tinubu’s re-election
Mr Shettima urged Kaduna residents to renew the mandates of Messrs Tinubu and Sani, saying the APC is committed to continuity and development.
World
Trump posts meme tagging Ilhan Omar ‘scam from Somalia’
Mr Trump posted a screenshot of an incoming phone call with a portrait of Ms Omar without her hijab and inscription that reads: “Scam likely from Mugadishu, Somalia.”
Heading 5
Seven killed, 34 injured as gunmen open fire at church funeral
CCTV footage showed three gunmen making their way from a road toward the church.
