Terra Luna Founder Do Kwon Will Be Extradited to the United States

Do Kwon, the mastermind behind the TerraUSD and Luna disaster, has wiped out $40 billion in cryptocurrency and will finally come to the United States to face justice. Montenegro's Minister of Justice, Bojan Božović, has signed an extradition order, prioritizing the request of the United States over that of South Korea. This decision was made after the Supreme Court of Montenegro confirmed that all legal conditions for extradition had been met. The court evaluated criteria such as the seriousness of Kwon's alleged charges and the sequence of requests, leaning towards the United States. The Ministry of Justice said, 'Most of the criteria set by law support the extradition requests of the competent authorities of the United States,' which in fact has extinguished South Korea's hope of prosecuting Kwon on its own territory. The rise and fall of TerraUSD and Luna Kwon not only created TerraUSD and Luna, but also built an empire based on robustness, algorithms, and a flawed financial model. TerraUSD is marketed as a stablecoin that always has a value of 1 dollar. But unlike traditional stablecoins backed by tangible assets, TerraUSD relies on its connection to Luna, another type of cryptocurrency. The idea is very simple: TerraUSD can be exchanged for 1 dollar worth of Luna, creating an artificial fixed exchange rate. To make the deal more attractive, Kwon introduced the Anchor Protocol, offering an annual profit of 20% for TerraUSD deposits. Yes, 20%. For a while, this crazy interest rate has attracted investors like bees searching for honey. Then everything exploded. On May 7, 2022, the fixed exchange rate of TerraUSD dropped to $0.99. Investors panicked and sold their stocks. In a desperate attempt to fix the situation, Terraform Labs flooded the market with Luna, causing its price to plummet. Luna, once valued at over $100, has become worthless in just a few days. Billions of dollars of Bitcoin reserves were deployed in vain to stabilize the collapse. The aftermath not only defeated TerraUSD and Luna but also caused a domino effect, bankrupting other cryptocurrency companies and erasing $2 trillion in market value. The scale of destruction has attracted the attention of regulators around the world. US authorities accuse Kwon of deceiving investors and concealing assets. In South Korea, where Luna has 280,000 holders, it is no exception. The lawyers there have accused of fraud and illegal fundraising, leading prosecutors to issue an arrest warrant in September 2022. At that time, Kwon disappeared from Singapore, forcing Interpol to issue a red notice. The downfall of a fugitive Kwon does not run forever. His world adventure ends in Podgorica, Montenegro, on March 23, 2023. He and Han Chang-joon, former finance director of Terraform Labs, were arrested while attempting to board a private jet to Dubai with fake passports. The arrest was like a movie—Interpol notification, fake documents, and a last-minute arrest at the airport. Immediately, both the United States and South Korea requested extradition. But first, Montenegro also has its own point to address. Kwon had to spend four months in prison in Montenegro for forging documents. After being released, he was transferred to a foreign reception center, awaiting the decision that has now put him in the custody of the United States. Han Chang-joon is not as lucky—or maybe he is lucky. In February of this year, Montenegro sent him back to Korea. Terraform Labs did not yield without a fight. The company rejected South Korea's allegations of political motives, arguing that Luna does not qualify as a security under the country's laws. They call these accusations 'baseless', a term that may no longer hold much value when $40 billion of investors' money has evaporated. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)