TerraUSD Founder Do Kwon Opposing SEC’s Extradition Plea: Report
Kwon Do-Hyung, popularly known as Do Kwon, has been in trouble for six months. As per several reports, he is one of the prominent owners of Terraforms Labs, who is accused of committing fraud.
Kwon’s attorney asserts that bringing “Do Kwon to the U.S. is impossible because he is detained indefinitely in Montenegro, and providing written testimony would violate his due process rights under federal law”.
“An order mandating something impossible serves no practical purpose and risks undermining judicial authority,” Kwon’s attorney said in the filing.
The SEC requested authorization from the court to interrogate Do Kwon, the founder of Terraform Labs, about the Terra and Luna stablecoin failure.
The agency alleges that Terraform Labs fooled investors about the safety of its TerraUSD stablecoin, which crashed in May 2022, causing massive losses for investors.
Interpol issued a red alert notice against Do Kwon in the third quarter of 2022. The department also revealed the information about the arrest after he was detained by police officials at Podrica airport.
He was trying to leave the country and flee to some unknown destination to avoid legal proceedings.
Did Do Kwon Secretly Fund the Political Party of Montenegro?
In June 2023, a regional media outlet in Montenegro claimed that the founder of Terraforms Labs has close contacts with some political parties in the region.
Dozens of facts claim that some political leaders purely backed the speedy bail acceptance of Do Kwon.
Many facts have been circulated in the crypto; some also claim that Do Kwon was aware of the demise of the LUNA token, but he continued to react normally and wiped out billions from the customer funds.
Some leading nations wrote a letter of permission to Montenegro for the extradition of Do Kwon for investigation and other legal proceedings. Significant charges that might trouble him are fraud, misleading, and money laundering.
However, some reports and research also assure that before this, Do Kwon has converted his crypto holdings into Bitcoin.
Dan Sunghan, the director of Financial Crime Investigation at Seoul Southern District Prosecution Service, claims that the founder’s funds were transferred to unidentified wallets worth $30 Million.
The unprecedented collapse of LUNA/UST is among the most destructive events for the crypto market, which wiped out hundreds of Billions in just a few days.
At the time of writing, the entire crypto market volume surged over 47% and crossed the milestone of $1.08 Trillion.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
