Freshly extradited by Montenegro to the United States, Do Kwon will now be tried. The co-founder of Terraform Labs, surrounded by a team of lawyers, is preparing his defense. If convicted on all counts, he could be sentenced to life in prison.
Do Kwon, founder of the Terra ecosystem (LUNA), will soon be judged
Shortly after being extradited from Montenegro to the United States, Do Kwon pleaded not guilty in New York court as part of a first appearance before the judge in charge of the case against the co-founder of Terraform Labs.
In the courtroom, the main person concerned, dressed in a verdigris sweater, was accompanied by his lawyers. “ Do Kwon chats with one of his lawyers, smiling – apparently in a good mood, » said Matthew Russell Lee, lawyer who founded the media Inner City Press and present in the court.
Do Kwon is chatting with one of his lawyers, smiling – apparently in good spirits
— Inner City Press (@innercitypress) January 2, 2025
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In the United States, Do Kwon is indicted numerous charges. The founder of the Terra ecosystem (LUNA) has never been judged in person around the fall of the stablecoin TerraUSD (UST). “ Behind the scenes, Terraform's main products did not work as Do Kwon claimed and were manipulated to create the illusion of a functioning, decentralized financial system in order to attract investors, » said Attorney General Merrick B. Garlandw.
Considered one of the main culprits for the dysfunction of the UST stablecoin, the South Korean businessman is notably accused fraud, market manipulation and money laundering. If he were to be found guilty of all of these charges, the co-founder of Terraform Labs could face a sentence of 130 years in prison.
“ Do Kwon will now have to answer in a US court, court documents allege, regarding his elaborate schemes involving Terraform's cryptocurrencies, which resulted in losses of more than $40 billion for investors» said the prosecutor.
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Extradition to the United States after months of procrastination
As stated by Merrick B. Garlandw, the United States Department of Justice worked extensively to obtain the extradition of Do Kwon to their territory. Arrested in Montenegro in March 2023 in possession of false identity documents, the European country took its time to judge the co-founder of Terraform Labs.
Montenegrin justice, in favor of Do Kwon's extradition, tried to determine to which country he would be sent: in South Koreaits country of origin, or in the United Stateswhere the actions of the founder of the Terra ecosystem seem to have had the most impact.
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After many twists and turns, it is Bojan Bozovicthe Ministry of Justice of Montenegro, which ruled, signing an executive order allowing the founder of Terra to be sent to the United Statesand therefore rejecting South Korea's request.
“ This extradition from Montenegro is an example international partnerships of the US Department of Justicewhich allow criminals to be pursued wherever they try to hide, »concluded the Attorney General.
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Source: United States Department of Justice
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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