Jury finds Crypto mogul Do Kwon liable in US civil fraud trial

A jury in New York found crypto mogul Do Kwon and his company, Terraform Labs, liable on civil fraud charges related to misleading investors before TerraUSD stablecoin’s collapse in 2022. Do Kwon is currently in Montenegro awaiting a decision on whether he will be extradited to South Korea or the U.S. The top court in Montenegro recently decided to review the extradition process.

The jury’s verdict in Manhattan federal court aligned with the US Securities and Exchange Commission’s claims that Kwon and Terraform Labs deceived investors prior to the stablecoin’s collapse. This decision comes amidst a legal battle over Kwon’s extradition as both South Korea and the U.S. seek his return in connection to the crypto crash.

In March last year, Kwon was apprehended at an airport in Montenegro while reportedly attempting to flee to the United Arab Emirates on a forged passport. He had been evading authorities since fleeing South Korea amid investigations into the crypto debacle that caused significant financial losses.

South Korean prosecutors have requested Kwon’s extradition to face allegations regarding the crash of TerraUSD and Luna coins in May 2022, which resulted in a market value loss of approximately $37 billion. The case is now in the hands of Montenegro’s legal system, with the extradition process under review following the top court’s decision.