Terra Luna Do Kwon’s Extradition Approved: US Wins Battle Against South Korea
In a major development, the Montenegrin Minister of Justice has approved the United States’ request to extradite Terra (LUNA) founder Do Kwon. This decision ends months of legal wrangling and brings Do Kwon one step closer to facing justice for his alleged role in the devastating 2022 Terra implosion.
The $40 Billion Crypto Wipeout: A Global Manhunt
The Terra Luna ecosystem’s collapse in 2022 sent shockwaves through the cryptocurrency market, wiping out an estimated $40 billion in investor value. The algorithmic stablecoin TerraUSD (UST) dramatically depegged from the US dollar, triggering a chain reaction that saw the price of LUNA plummet from over $100 to practically zero.
Following this catastrophic event, Do Kwon embarked on a global manhunt, fleeing to Serbia and eventually settling in Montenegro. In March 2023, he was arrested by Montenegrin authorities while attempting to flee the country to Dubai.
Read more: Terra Luna $50B Collapse: SEC Fines Crypto Firm $123 Million!
US Wins Extradition Battle: 40-Year Sentence Looms
Both the United States and South Korea had sought Do Kwon’s extradition, each seeking to prosecute him for his alleged involvement in the Terra collapse. After careful consideration, the Montenegrin Minister of Justice ultimately favored the United States’ request, citing factors such as the gravity of the crime, the order of submission, and the possibility of further extradition.
Do Kwon now faces the prospect of a 40-year prison sentence in the United States if convicted. This decision marks a significant step towards accountability for the Terra debacle and sends a strong message to those who may seek to manipulate the cryptocurrency market.
Read more: Terra Luna 2.0: A Phoenix Rising from the Ashes?
The Ripple Effect: 3AC Bankruptcy and the $4.47 Billion SEC Fine
The Terra collapse had a profound impact on the broader cryptocurrency market, contributing to the downfall of major firms such as Three Arrows Capital (3AC). 3AC, heavily invested in Terra, filed for bankruptcy, and its collapse sent shockwaves through the industry.
Furthermore, the Terra implosion played a significant role in the SEC’s increased scrutiny of the cryptocurrency market. The SEC has since taken a more aggressive stance against cryptocurrency exchanges and has levied substantial fines, including a $4.47 billion penalty against a major cryptocurrency exchange earlier this year.
Read more: Terra Luna $50B Collapse: SEC Fines Crypto Firm $123 Million!
Conclusion: A Landmark Decision for the Crypto Industry
The decision to extradite Do Kwon to the United States marks a significant milestone in the ongoing effort to hold individuals accountable for their actions within the cryptocurrency market. This landmark decision underscores the growing importance of regulatory oversight and the need for robust safeguards to protect investors from market manipulation and fraud.
