Key takeaways:
- Do Kwon is apparently going to remain in Montenegrin detention until February.
- Do Kwon is facing charges in both the US and South Korea about his purported involvement in the demise of Terra.
Do Kwon, the co-founder of Terraform Labs, is apparently going to remain in Montenegrin detention until February. Kwon is anticipated to be extradited to the United States to face criminal accusations.
Authorities from the United States and South Korea asked that Kwon be detained by Montenegrin authorities for an extra two months after his prison sentence ended, according to a report published by Bloomberg on December 12. The co-founder of Terraform Labs was given a four-month prison sentence after being apprehended in Montenegro in March on suspicion of using forged travel documents.
Kwon, a citizen of South Korea who was previously stationed in Singapore, is facing charges in both the US and South Korea about his purported involvement in the demise of Terra. On December 7, the Wall Street Journal said that Kwon would be placed under US custody prior to South Korea. Requests for extradition are pending in both nations.
Eight criminal accusations, including commodities fraud, securities fraud, wire fraud, conspiracy to commit fraud, and market manipulation in connection with his tenure at Terraform Labs, would be brought against Kwon if he were extradited to the United States. Kwon has additionally been accused by the US Securities and Exchange Commission of “defrauding investors in crypto schemes.”
Many people saw the collapse of Terra in May 2022 as a significant event that started the decline in the cryptocurrency sector. Following the depreciation of TerraUSD (UST) from the US dollar, several companies, including Voyager Digital, BlockFi, Celsius Network, and FTX, declared bankruptcy.
A notification issued by the FSC states that by July 2024, investors in digital assets must get interest when they deposit their funds into an exchange. Along with classifying virtual assets, the South Korean regulator also developed guidelines for virtual asset providers regarding the handling of consumer deposits.
