Nightmare Terra (LUNA) founder comes out: US extradition official

Recently, one of the key figures behind the Terra fiasco (LUNA) scored a small victory. But now the net really seems to be closing for Do Kwon. The founder of Terra will soon be extradited to the country he didn’t want to go to.

The founder of Terra (LUNA) is extradited

From The Block’s reporting on X It appears that Kwon will be extradited to the US. The US authorities brought charges against the founder last year among other things, for violations of securities laws. However, Kwon could not be handcuffed.

He was missing for a long time until he was finally arrested in Montenegro. There he fought for a long time against extradition to the USA. South Korea also filed an extradition request.

According to local media, Kwon’s lawyer argued for extradition to South Korea. But ultimately Montenegrin Justice Minister Goran Rodić decided that the man behind Terra should be extradited to the US.

According to local media, the decision for the USA is a political decision. The US is an important partner and both countries would like to agree on a robust extradition treaty.

It is unclear how long Kwon will ultimately remain behind bars. Once he arrives in the US, a long trial will likely follow that will likely be very similar to the ongoing trial of the ex-CEO of bankrupt crypto exchange FTX, Sam Bankman-Fried.

The crypto fiasco caused $40 billion in damage

Terra was a blockchain platform best known for its stablecoin TerraUSD (UST) and its associated cryptocurrency LUNA. Terra’s collapse in May 2021 began when UST’s peg to the US dollar broke, leading to a loss of confidence and massive selling in UST and LUNA. This led to a dramatic drop in the value of both cryptocurrencies and the collapse of the system.

Read Also:  Ecuador suspends referendums in Mexico and Israel because of attack on Mexican embassy

The fallout from the collapse was significant, including massive financial losses for investors, shaken confidence in stablecoins and the DeFi sector, and impacts on the broader crypto market. Ultimately, nearly $40 billion disappeared from the Terra ecosystem. The entire crypto market lost $450 billion due to the collapse of LUNA.

Do you want to always be one step ahead of the market? Join our vibrant Discord community with more than 9000 members! Here you can easily discuss the latest crypto trends and expectations.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here