to Kwonone of the founders of South Korea Terraform LabsAccording to local media reports, he was extradited from Montenegro to the United States, ending months of legal proceedings in the matter.
Montenegrin police handed Kovin over to US authorities at Podgorica International Airport on December 31. He is set to face charges stemming from the 2022 collapse. TerraLUNA An ecosystem that removed almost $40 billion from the market.
Coven was arrested in March 2023 in Montenegro for trying to travel with a fake passport. Since then, he has fought for extradition to the United States and in return He wanted to return to the country to South Korea
However, the Montenegrin judiciary repeatedly rejected his appeals, and Justice Minister Bojan Bezovic Signed the extradition order Last week to America
The fall of TerraLUNA
Marketed as a stablecoin designed to maintain parity with the US dollar, TerraUSD has plummeted, wiping out more than $40 billion in market value and leaving thousands of investors with huge losses. The crash sent shockwaves through the broader crypto market, prompting regulatory scrutiny and allegations of fraud.
Kwon founded and promoted Terraform Labs in 2018 TerraUSD As a revolutionary decentralized financial tool. However, critics warned that the algorithmic model underlying TerraUSD's stability was unstable.
As the stablecoin's value plummeted, Luna's fall compounded the losses, and the total market cap of the two tokens fell by around $33.9 billion.
After the plane crash, South Korean authorities issued an arrest warrant for Kwon on charges including fraud and tax evasion. Investors also filed complaints that Kwon and his company were running a Ponzi scheme, misleading them about the capabilities of TerraUSD and Luna.
Kwon's arrest
Interpol issued a Red Alert for Kwon in September 2022, listing him as a high-priority international fugitive. Despite this, Coven remained on the run for months, apparently traveling between several countries before his arrest in Montenegro.
During his arrest, police discovered that Coven was using fake Costa Rican and Belgian passports, adding a forgery charge to his legal woes.
While South Korea is seeking Kwon's extradition to face domestic charges, Montenegrin authorities have prioritized his extradition to the United States. In the United States, Kwon is expected to face charges of securities fraud, wire fraud and conspiracy related to the Terraform Labs cryptocurrency explosion.
The Kwon case has become emblematic of the risks and regulatory challenges in the crypto industry. TerraUSD's collapse prompted global calls for closer oversight of digital assets, with regulators warning of systemic risks from poorly managed stablecoins.
The extradition marks a new chapter in the international pursuit of accountability in the crypto sector, as Kwon's trial in the US is expected to examine his role in one of the biggest financial meltdowns in crypto history.
