1 of 2 | Police officers escort South Korean crypto mogul Do Kwon (C) to a holding facility for foreigners pending his extradition, in Podgorica, Montenegro, in March. File Photo by Boris Pejovic/EPA-EFE
Jan. 2 (UPI) — Alleged crypto fraudster Do Kwon was facing multiple federal charges in the United States Thursday after being extradited from Montenegro. He was a fugitive wanted in the 2022 $40 billion TerraUSD collapse.
Kwon’s extradition after 18 months on the run was completed at Podgorica International Airport. His extradition was first reported by Bloomberg.
Kwon, full name Kwon Do-hyung, is co-founder of Terraform Labs.
Financial damage from his alleged fraud that led to the huge crypto crash is estimated to exceed $34 billion.
The South Korean businessman is accused of defrauding investors regarding blockchain technology while spreading false information through media interviews
Kwon was extradited and turned over to the FBI to face federal charges including securities fraud, wire fraud, commodity fraud and conspiracy to manipulate market prices.
The cryptocurrencies TerraUSD and Luna wiped out $40 billion in value in just 48 hours.
According to U.S. federal prosecutors Kwon orchestrated “a multi-billion dollar crypto asset securities fraud.”
Kwon served four months in prison for using false travel documents and stayed in a kind of legal limbo for over a year while his case played out in Montenegro courts.
A U.S. Securities and Exchange Commission civil case found Kwon and Terraform liable for fraud in April. They agreed to pay $4.5 billion.
The Department of Justice charged Kwon with eight felonies.
He was arrested at Montenegro’s Podgorica airport in March of 2023.
The collapse of Kwon’s crypto empire wiped out billions in investments and life savings.