Terra Co-founder Do Kwon’s Detention Extended Amid Extradition Demands

Reports state that Do Kwon, co-founder of Terraform Labs and a person expected to be extradited to the United States to face criminal charges, will be detained in Montenegro until February.

Authorities from the United States and South Korea have requested that Montenegrin authorities detain Kwon for an additional two months subsequent to the completion of his prison sentence, as reported by Bloomberg on December 12.

In March, authorities apprehended the co-founder of Terraform Labs in Montenegro on suspicion of utilizing forged travel documents. His conviction resulted in a four-month prison sentence. Kwon, a South Korean national who formerly resided in Singapore, faces charges in both the United States and South Korea for his alleged involvement in the Terra collapse.

On December 7, The Wall Street Journal reported that the United States would seize Kwon prior to South Korea. Extradition requests are pending in both nations as of the date of publication.

If extradited to the United States, Kwon could face charges for eight felonies connected to his tenure at Terraform Labs, including conspiracy to defraud and manipulate the market, securities fraud, commodities fraud, and wire fraud.

Additionally, Kwon has been accused by the U.S. Securities and Exchange Commission of “defrauding investors in crypto schemes.” Terra’s collapse in May 2022, regarded by many as a pivotal moment, initiated a decline in the cryptocurrency market.

After TerraUSD (UST) depreciated from the U.S. dollar, numerous companies, including Voyager Digital, BlockFi, Celsius Network, and FTX, subsequently declared bankruptcy.