The founders of Terra and Luna face charges in multiple countries.
It was reported on March 29 that both the United States and South Korea intend to sue Terra founder Daoquan, making his next destination unclear.
Quan faces charges in multiple countries
Currently, Kwon is being held in Montenegro. Ongoing court proceedings in that country are now determining where Kwon will go to face trial.
Montenegrin Justice Minister Marko Kovacs said the severity of Quan’s crimes, where they were committed and the order of the pleas will determine Quan’s next destination.
Kovacs said Kwon's citizenship would also come into play. While he did not elaborate, Kwon is a South Korean citizen and is not believed to have dual U.S. citizenship. This would presumably be a point in favor of extradition to South Korea.
In the United States and South Korea, Kwon faces various fraud charges related to his failed cryptocurrency and stablecoin company Terraform Labs.
Bloomberg noted that the United States and South Korea do not have extradition agreements with Montenegro, but have other international arrangements. The two countries could also reach an agreement that would allow Kwon himself to challenge the extradition.
Additionally, Kwon was initially arrested in Montenegro, where he was charged with traveling with false documents. Therefore, he may need to serve time in Montenegro for these charges before facing the judicial systems of both countries.
The Terra collapse occurred nearly a year ago
Terra originally shut down in May 2022, and these latest lawsuits are just part of an investigation into the project and its founder.
The U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) are both investigating Terra’s collapse. Singapore is also investigating the matter. Terra co-founder Daniel Shin is also wanted by authorities.
Terra’s UST stablecoin has long lost its peg to the dollar and is now worth $0.02. Terra Luna Classic (LUNC) has also lost almost all of its value since May 2022, but still maintains a market cap of $733 million, making it the 67th largest cryptocurrency.