The disgraced co-founder of the Terra (LUNA) ecosystem is set to appear in a US court today after recently being extradited from Montenegro.
According to a new report by Reuters, Do Kwon is facing fraud charges in the US related to the multibillion-dollar downfall of Terra in 2022 and will make his first court appearance on the matter.
Kwon was initially arrested in March of 2023 in the Balkan nation after being caught attempting to board a flight to the United Arab Emirates with a fake Costa Rican passport. He had been evading authorities since the crash of Terra and its associated assets, TerraUSD and LUNA.
TerraUSD was an algorithmic “stablecoin” designed to mint more LUNA if necessary as a means of keeping its price pegged to $1. However, the mechanism failed and left both assets with highly inflated supplies, causing their prices to plummet.
After his arrest, two nations – the United States and South Korea – wanted him extradited to face criminal charges. However, last month the highest court in Montenegro ruled that Kwon is to be extradited to the U.S. while rejecting South Korea’s request.
The court also recently turned away Kwon’s appeal on the matter, noting that he met all the criteria to be extradited to the U.S.
Kwon is charged with two counts each of securities fraud, wire fraud, commodities fraud and conspiracy, according to the report. He is set to appear in a New York federal court. If convicted on all counts, he faces decades behind bars.
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