Do Kwon Extradition Approved: What Does It Mean For Terra (LUNA) Price?
Extradition Approved
Terraform Labs founder Do Kwon has had his extradition approved by a Montenegrin court. This means that he could be sent to either South Korea or the United States, both of which have issued arrest warrants for him.
Kwon Faces Charges in South Korea and the United States
Kwon is facing charges in both South Korea and the United States in connection with the collapse of the TerraUSD (UST) stablecoin and the LUNA cryptocurrency. In South Korea, he is charged with fraud and breach of the Capital Markets Act. In the United States, he is charged with fraud and securities violations.
Effect on Terra (LUNA) Price
The news of Kwon's extradition has had a negative impact on the price of Terra (LUNA). The cryptocurrency has fallen by over 10% in the past 24 hours.
Possible Scenarios
There are a few possible scenarios for what could happen next. Kwon could be extradited to either South Korea or the United States. He could also fight extradition and attempt to remain in Montenegro.
Extradition to South Korea
If Kwon is extradited to South Korea, he could face a lengthy prison sentence. He could also be ordered to pay restitution to the victims of the TerraUSD and LUNA collapse.
Extradition to the United States
If Kwon is extradited to the United States, he could face a longer prison sentence than he would in South Korea. He could also be required to pay a higher amount of restitution.
Remaining in Montenegro
If Kwon is able to remain in Montenegro, he could avoid extradition altogether. However, he would likely be unable to travel outside of the country.
Conclusion
The extradition of Do Kwon is a major development in the ongoing saga of TerraUSD and LUNA. It is unclear what the long-term impact of this development will be on the price of Terra (LUNA), but it is likely to have a significant negative impact in the short term.
Overall, the extradition of Do Kwon is a negative development for Terra (LUNA) investors. However, the exact impact is unknown.
