Do Hyeong Kwon, co-founder and former CEO of Terraform Labs PTE, Ltd., has been extradited from Montenegro to the United States to face federal fraud charges. The announcement was made by Daniel M. Gitner, Attorney for the United States; Merrick B. Garland, U.S. Attorney General; and James E. Dennehy, Assistant Director in Charge of the FBI's New York Field Office.
Kwon is accused of engaging in schemes that defrauded investors and led to over $40 billion in losses following the crash of Terraform's cryptocurrencies in May 2022. He appeared before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan on December 31, 2024, with his case assigned to U.S. District Court Judge John P. Cronan.
"A federal grand jury has indicted Do Kwon for misleading his investors," stated Daniel M. Gitner. "As we allege, this fraud erased over $40 billion in investor assets."
Attorney General Merrick B. Garland emphasized that Kwon will be held accountable for "his elaborate schemes involving Terraform’s cryptocurrencies." Garland highlighted the international cooperation that led to Kwon's extradition despite his alleged attempts to evade capture.
James E. Dennehy of the FBI remarked on Kwon's actions: "Do Kwon allegedly defrauded investors by falsely advertising the company's blockchain products." Dennehy reiterated the FBI's commitment to pursuing individuals engaged in fraudulent financial practices globally.
The Superseding Indictment claims that between 2018 and 2022, Kwon orchestrated multiple fraudulent schemes related to Terraform’s cryptocurrency stablecoin protocol and other blockchain technologies under his control.
Kwon faces multiple charges including commodities fraud, securities fraud, wire fraud, conspiracy counts related to these charges, and money laundering conspiracy—potentially resulting in a maximum sentence of 130 years if convicted.
Gitner praised various international bodies including Interpol and Montenegrin authorities for their assistance in securing Kwon’s extradition while also acknowledging contributions from the U.S Securities and Exchange Commission and Commodity Futures Trading Commission involved with separate civil actions against him.