Kwon is facing criminal fraud charges that arose from the 2022 collapse of the TerraUSD algorithmic stablecoin and LUNA token. US prosecutors allege that the 33-year-old misled investors about the stability of the crypto assets, which led to the $40 billion collapse of the Terra ecosystem.
The development comes following Kwon’s extradition from Montenegro. He was arrested at the Podgorica Airport in March of 2023 while attempting to board a flight to Dubai using a fake Costa Rican passport.
The South Korean software engineer is facing charges in both the US and his native country, but Montenegrin authorities decided to extradite him to the United States. He arrived in the US on December 31st.
Kwon is charged with eight counts, which include conspiracy to defraud, two counts of commodities fraud, two counts of securities fraud, two counts of wire fraud and conspiracy to defraud and engage in market manipulation.
Kwon faces a maximum penalty of 130 years in prison if found guilty of all the charges.
