US secures extradition of Do Kwon from Montenegro
Do Kwon, Terra Founder, Pleads Guilty to Fraud Charges
In a significant development, Do Kwon, the founder of the Terra blockchain and stablecoin project, has pled guilty to two fraud charges related to the collapse of TerraUSD and Luna cryptocurrencies. This plea followed his extradition from Montenegro to the U.S. after being arrested there in March 2023 for attempting to travel with falsified documents.
The legal proceedings against Kwon had been ongoing since spring 2023. Since March 2024, he had been held in a migration center while awaiting the resolution of his case. The extradition, approved by Montenegro's Justice Minister Bojan Bozovic on December 27, took place as confirmed by Montenegro's Prime Minister Milojko Spajic.
Kwon faced multiple charges including securities fraud, commodities fraud, wire fraud, conspiracy, and money laundering linked to the Terra/Luna $40 billion crypto collapse. He admitted he deliberately misled investors about how TerraUSD maintained its $1 peg and accepted responsibility for defrauding investors. As part of a plea deal, he agreed to forfeit over $19 million and faces a maximum sentence of 25 years, with prosecutors recommending no more than 12 years if he continues cooperating.
Montenegro's actions against both Kwon and Richard Heart, the founder of HEX, PulseChain, and PulseX projects, demonstrate its commitment to international justice and the rule of law. In late December, Heart was placed on an international wanted list for tax evasion and assault charges.
It's important to note that Montenegro welcomes innovation and law-abiding entrepreneurs in cryptocurrency, AI, and other technologies. However, it has zero tolerance for fraud. Ongoing investigations into alleged misuse of funds in Montenegro are ongoing, though Kwon denies those allegations.
Kwon's sentencing is scheduled for December 11, 2025. This plea marks a significant step in holding accountable those responsible for the Terra stablecoin fraud case.
References:
- CoinDesk
- Bloomberg
- Reuters
- The Wall Street Journal
- Decrypt
- The guilty plea by Do Kwon, the Terra blockchain founder, is set to impact the general-news and politics landscape, as his case has been a topic of extensive debate in the realm of crime-and-justice.
- Kwon's sentencing, scheduled for December 11, 2025, will be closely followed by global media outlets, given the far-reaching consequences of the TerraUSD and Luna cryptocurrencies collapse.
