Jury Finds Crypto Mogul Do Kwon Guilty of Civil Fraud in US Trial

In a recent development reported by various news outlets, a jury in New York has rendered a verdict against cryptocurrency magnate Do Kwon and his firm, Terraform Labs, on charges of civil fraud. Currently residing in Montenegro, Kwon faces a pending extradition process to either South Korea or the United States. The jury sided with the U.S. Securities and Exchange Commission's assertion that Kwon and his company provided misleading information to investors prior to the collapse of the TerraUSD stablecoin in 2022.

This verdict, delivered in a Manhattan federal court, adds to the ongoing uncertainty surrounding Kwon's extradition, as both South Korea and the U.S. are seeking his return in connection to the cryptocurrency crash, as reported by the Yonhap news agency.

However, the situation took a new turn when Montenegro's highest court overturned a previous decision to extradite Kwon to Korea, returning the case to a lower court, according to the Montenegrin daily Vijesti.

Notably, the extradition process faced a setback last month when Montenegro's top court deferred Kwon's extradition to Korea following a request from the prosecution to review the legality of the procedures leading to the initial decision.

Kwon's capture at a Montenegro airport in March of the previous year, allegedly attempting to board a flight to the United Arab Emirates with a forged passport, marked the end of his fugitive status after fleeing Korea amidst investigations into the cryptocurrency scandal.

South Korean authorities have been actively pursuing Kwon's extradition on charges linked to the crash of Terraform Labs' TerraUSD and Luna coins in May 2022, which reportedly resulted in the loss of nearly 50 trillion won ($37 billion) in market value.