Do Kwon Marches Closer to Extradition Amid LUNC, LUNA Crisis

Do Kwon with arms crossed is wearing an orange prison suit and is sitting on the floor in the corner of a prison cell.
  • South Korean prosecutors seek the repatriation of Do Kwon.
  • Jailed in Montenegro, Do Kwon recently denied fraud charges.
  • The reforged Terra (LUNA) token crumbled to an all-time low today.

The South Korean special task force assigned to trace the crypto fugitive Do Kwon wants to bring the Terra founder home. In the latest public statement, the chief prosecutor Dan Sung-han assured that most of the alleged crimes were committed in South Korea before he fled to Singapore.

On top of that, the prosecutor explained that the repatriation of Do Kwon “would be the most efficient way of bringing justice” to the investors. The prosecutors have to compete with the United States and Singapore for extradition, while Do Kwon recently denied the fraud charges by the U.S. Securities and Exchange Commission (SEC).

Terrifying Terra Story: A Year Later

Currently, the crypto fugitive is being held in Montenegro on document forgery charges. According to Montenegro’s Minister of Interior, Filip Adzic, it’s very likely that the Montenegrin courts would proceed with the extradition procedure cooperatively with South Korea.

Indeed, the criminal lawsuit by the South Korean authorities might send the fallen crypto entrepreneur to jail for 40 years. This would also be deemed the largest-scale financial crime in South Korea’s history.

LUNC, LUNA Hit Rock Bottom

All Terra system tokens sank last week with double-digit losses since last week. Terra Luna Classic (LUNC), the rebranded original token that crumbled to pieces in May 2022, took another hit. Over the previous seven days, the battle-scarred $LUNC lost another 18.8% market value. 

At press time, LUNC trades at $0.00009000, according to CoinGecko. The drowning altcoin is at its lowest point in six months, recently adding another zero to the $LUNC price. The star-crossed cryptocurrency lost a crucial long-term support line and followed in the footsteps of the rebranded Terra (LUNA), which also plunged to an all-time low.

According to Crypto Twitter, the revitalization of LUNA, LUNC, and TerraUSD (USTC) isn’t working due to a low tax burn rate. LUNC trader JesusIsLORD pointed out that the struggling network plunged further after the 0.2% burn proposal was passed instead of the original 1.2% $LUNC tax burn.

On the Flipside

  • Singaporean authorities haven’t requested extradition yet – this could dramatically alter Kwon’s repatriation plans.
  • The LUNC community is divided on tax burn proposals, as some prominent members took an anti-tax stance.

Why You Should Care

The trainwreck caused by Terra (LUNA) and Terra USD (UST) depegging in May 2022 caused one of the largest-scale wipeouts in modern financial history.

FAQs

Where is Do Kwon now?

Currently, Do Kwon is being held in Montenegro but might soon face extradition to South Korea.

How did Do Kwon make his money?

During the DeFi boom in 2019, Do Kwon made a fortune from Ethereum (ETH). Before the Terra Luna crash, Kwon’s net worth had reached $10 billion.

What caused the crash of Luna?

The depegging of the algorithmic stablecoin UST crashed both the stablecoin and the original LUNA token, which was tied to the stablecoin instead of the United States Dollar. Terra (LUNA) crashed from $118 to $0.0001 in a few days.

What happens to the Luna crypto now?

A vast community of traders is still trying to revitalize the struggling Terra Luna Ecosystem. Recently, the LUNC community passed a proposal to repeg the stablecoin via tax burns.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.