In May 2022, the Terra-LUNA ecosystem suffered a massive collapse, causing all cryptocurrencies, including Bitcoin, to drop sharply.
While the decline in BTC and the crypto market caused great losses to retail investors, crypto platforms with Terra investments also came to the brink of bankruptcy or went bankrupt.
Terraform Labs co-founder and CEO Do Kwon, who fled from May until last March, was caught and arrested in Montenegro on 23 March.
After his arrest in Montenegro, South Korean authorities demanded Do Kwon's extradition.
However, the extradition process of Do Kwon, who was accused by Montenegrin prosecutors of forgery of official documents, has been extended.
South Korean prosecutors conducting investigations into crypto entrepreneur Do Kwon have said that repatriating Kwon would be the best way to bring justice to TerraUSD investors who destroyed $40 billion from the cryptocurrency market, the Wall Street Journal reported.
In the report, Dan Sung-han of the Seoul Southern District Attorney's Office said that Terra co-founder Do Kwon should be extradited to South Korea instead of the United States.
Stating that he believes most of the evidence against Do Kwon and Terra's affiliates is true, Sung-han said that South Korean prosecutors and courts are well prepared for Do Kwon's trial.
If Do Kwon is extradited to South Korea and found guilty at trial, he will likely be the first person in South Korean history to receive the longest prison sentence of more than 40 years for a financial crime.
Currently, South Korea and the United States are seeking the extradition of Do Kwon from Montenegro. However, there is still no decision on Kwon's extradition.
*Not investment advice.