Do Kwon Facing $4.5B Penalty, Extradition After Terra Collapse
Disgraced crypto entrepreneur Do Kwon, founder of Terra (LUNA) and UST, faces a hefty penalty and potential extradition. His company, Terraform Labs, has only $150 million in assets left after the collapse of their cryptocurrency, which wiped out around $40 billion in value.
The U.S. has imposed a $3.5 billion restitution, over $460 million in interest, and a $420 million civil penalty on Do Kwon and Terraform Labs. Kwon, who is currently free on bail, was sentenced to four months in prison for document forgery. He is awaiting extradition with arrest warrants pending in South Korea and Serbia.
Kwon's actions triggered a chain of failures, culminating in the implosion of the FTX exchange. The SEC has barred him and his company from buying or selling cryptocurrencies and tokens, citing this as one of the largest securities frauds in U.S. history. Kwon, who fled to Montenegro, was arrested at Podgorica Airport with a forged passport.
Do Kwon is personally responsible for paying about $200 million of the $4.5 billion penalty agreed upon with the SEC. Terraform Labs, with only $150 million in assets left, faces an uncertain future as the crypto world continues to grapple with the aftermath of the Terra collapse.
