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South Korean Founder of Terra Coins, Do Kwon, Faces Extradition to the US for Fraud Charges

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According to reports, South Korean prosecutors will seek the extradition of Do Kwon, the founder of Terra coins. Early this morning, US prosecutors filed criminal fraud charges aga

South Korean Founder of Terra Coins, Do Kwon, Faces Extradition to the US for Fraud Charges

According to reports, South Korean prosecutors will seek the extradition of Do Kwon, the founder of Terra coins. Early this morning, US prosecutors filed criminal fraud charges against Do Kwon and sought to extradite Do Kwon to the United States. Do Kwon was arrested in Montenegro yesterday.

South Korean prosecutors will seek extradition of Do Kwon

Introduction

On Thursday, August 26th, South Korean prosecutors announced that they will seek the extradition of Do Kwon, the founder of Terra coins. The announcement came after US prosecutors filed criminal fraud charges against Do Kwon earlier that morning and sought to extradite him to the United States. Do Kwon was arrested in Montenegro on Wednesday, August 25th.

The Company Background

Terra is a decentralized blockchain platform founded by Do Kwon in 2018. The network uses its own stablecoin and aims to create a more decentralized and efficient payment system. It has backing from prominent investors and has been working on initiatives to establish partnerships with major corporations.

Fraud Allegations

The US Department of Justice alleges that Do Kwon and an unidentified co-founder of Terra used the platform to defraud investors out of millions of dollars. The indictment claims that Do Kwon and his co-founder fabricated the information they provided to investors in order to inflate the value of Terra’s proprietary stablecoin.
Specifically, Do Kwon and the co-founder allegedly told investors that Terra’s stablecoin was fully backed by fiat currency and was redeemable at a 1:1 ratio. However, the indictment claims that Terra’s stablecoins were not fully backed and that Terra had not implemented the proper measures to ensure that such stablecoins were redeemable at a 1:1 ratio.

The Prosecution’s Case

The US prosecutors involved in the case argue that Do Kwon’s fraud caused “substantial economic harm” to victims, many of whom were ordinary people investing their life savings. The charges include one count of conspiracy to commit wire fraud and two counts of wire fraud.
The US allegations are based on the fact that Terra has an operation in the United States, which is the main reason Do Kwon is being sought to face prosecution in the country.

The Extradition Process

South Korea has an extradition treaty with the United States, which means that it will be up to the South Korean courts to decide whether Do Kwon should be sent to the United States to face charges. The process of extradition can take months or even years, but South Korean prosecutors are pushing to expedite the process.

Conclusion

The charges against Do Kwon and his co-founder are a reminder that investors should always exercise caution when investing in cryptocurrencies. While the blockchain technology has many potential benefits, it can also provide opportunities for fraud and abuse. This case highlights the importance of regulatory measures being put in place to ensure investor protection in the cryptocurrency market.

FAQs:

Q: What is Terra?
A: Terra is a decentralized blockchain platform founded by Do Kwon in 2018.
Q: What are the fraud allegations against Do Kwon?
A: Do Kwon is accused of using the Terra platform to defraud investors out of millions of dollars.
Q: Will Do Kwon face prosecution in the US?
A: US prosecutors are seeking Do Kwon’s extradition to the United States to face charges of wire fraud and conspiracy to commit wire fraud.
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