Do Kwon, the former CEO of the Terra and Luna stablecoin project, is now facing a US Securities and Exchange Commission (SEC) extradition request as part of a criminal investigation into the collapse of the South Korean venture earlier this year.
Kwon is accused of having a hand in the alleged securities fraud scheme related to the Terra and Luna stablecoins and was indicted by the Korean government in June. He is now said to be in the process of fighting a request from the US government to extradite him in connection with the SEC’s investigation.
The US government reportedly wants Kwon extradited so that he can face prosecution on possible criminal charges and to provide testimony in the SEC’s investigation into the collapse of the Terra and Luna stablecoins. If found guilty, Kwon could face up to 20 years in prison.
The collapse of Terra and Luna was a major disruption in the emerging crypto markets in South Korea. The coin was one of the first stable coins to gain traction in the region and was used to facilitate transactions. It raised tens of millions of dollars in an ICO, but ultimately unraveled after the project was found to be fraudulent.
Do Kwan is accused of being the prime mover behind the project, having been involved in its creation and overseeing its operations until its eventual collapse. The US government is now hoping that Kwan will face justice for his involvement in the scheme.
The case is ongoing and it remains to be seen if Kwon will be extradited to the US. If so, he could face serious criminal charges and a long prison sentence if found guilty.