The United States federal government lastly got its metaphorical hands on Do Hyeong Kwon, the 33-year-old Korean nationwide who constructed a monetary empire on the cryptocurrency Luna and the “stablecoin” TerraUSD, just to see it all come crashing down in a wipeout that cost financiers $40 billion.

As personal financiers submitted claims, and as the federal governments of South Korea and the United States released scams examinations, Do Kwon was no place to be discovered. In 2022, the Korean federal government submitted a “red notice” with Interpol, looking for Kwon’s arrest and his go back to Korea. A couple of months later on, the Securities and Exchange Commission charged Kwon with scams in the United States.

On September 17, 2022, Kwon notoriously tweeted, “I am not ‘on the run’ or anything similar”– however he likewise would not state where he was. He didn’t assist his case when he was detained in March 2023 by the authorities in Montenegro. At an airport. With phony travel files. On his method to a nation without any United States extradition contract.

After serving a long time in a Montenegro jail, Kwon fought extradition to both Korea and the United States. This postponed the procedure by some months, however on December 31, 2024, he was delivered off to United States authorities. Today, he appeared in front of a federal judge in New York City, where he pled “not guilty” to scams.

The United States Justice Department crowed about the extradition, with United States Attorney General Merrick Garland mentioning that the United States can in some cases get to individuals in unexpected methods.

“We secured this extradition despite Kwon’s alleged attempt to cover his tracks by laundering proceeds of his schemes and trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the United States,” Garland stated in a declaration. “This extradition from Montenegro is an example of the Justice Department’s international partnerships, which enable the pursuit of criminals wherever they attempt to hide.”

5 supposed misstatements

When it comes to the charges, the United States likewise unsealed a huge indictment versus Kwon today, which you can check out here (PDF) if you desire all the gory information.

The standard claim is that Kwon “defrauded investors by falsely advertising the company’s blockchain products as decentralized, reliable, and effective, and by engaging in market manipulation, ultimately resulting in more than $40 billion in investor losses,” according to the United States federal government. This, the federal government declares, occurred in 5 crucial methods: