In a major development in the legal saga surrounding Terra Luna founder Kwon Do-Hyung, also known as Do Kwon, reports indicate that he will be extradited to the United States. According to the Wall Street Journal, Montenegro has privately confirmed its intention to send Do Kwon to the United States to face criminal charges. Following this news, the tokens of the Terra ecosystem began to decline.
Montenegrin Supreme Court approves Do Kwon’s extradition to the USA
cryptokoin.comAs you can follow from , the events that led to this extradition decision started in March. Terra founder Do Kwon was caught trying to leave the country with fake documents. After this, the court where he was brought issued an arrest warrant. Once a leading figure in the digital asset industry, Do Kwon’s reputation was damaged due to his involvement in the manipulation of the Terra USD stablecoin. This led to a series of criminal complaints against him. In addition, the massive $40 billion collapse associated with his actions prompted prosecutors in both the United States and South Korea to seek his prosecution.
Founder of Terra legal team could not stop the extradition process
Do Kwon’s arrest in Montenegro and his subsequent detention in this country paved the way for his extradition. In the latest development, a senior Montenegrin justice official privately confirmed the extradition plans. News sources also indicate that Do Kwon will indeed be extradited to the United States. This development follows unsuccessful attempts by Kwon’s legal team to bypass the extradition process, including an appeal of the decision approving the extradition in late November.
The allegations against Do Kwon were brought forward by the US Securities and Exchange Commission (SEC) in February. Terra Luna’s founder is accused of orchestrating a multibillion-dollar cryptoasset securities fraud. As Do Kwon’s extradition approaches, there will likely be a hearing to address the crimes he committed during his time as president of Terra Luna.
Tokens of the Terra ecosystem are in free fall
Meanwhile, although he has no connection with the ecosystem, developments regarding Do Kwon negatively affect the tokens. Kwon’s extradition to the United States will likely trigger a trial process. As we have seen from the FTX case before, the ecosystem is negatively affected in this case. Possibly as a result of this, Terra tokens began to decline following the news. In particular, LUNC and USTC began to free fall. LUNC fell from $0.0002458 to $0.0002064 on the day. The token saw a 13.6% loss in value during the day.
Additionally, the other token USTC followed a similar trend. USTC decreased by 13.54% on a daily basis.
Finally, the flagship LUNA token also fell sharply. Terra LUNA’s loss was approximately 8%.
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