According to U.S. prosecutors, Do Kwon’s alleged schemes could have affected more than 1 million victims worldwide.
US authorities extradited Kwon, the disgraced co-founder of the Terra (LUNA) ecosystem, late last month.
Kwon faces fraud charges in connection with Terra’s 2022 demise.
In a recently filed court document, prosecutors allege that Kwon’s “engineered financial world” relied on “lies and manipulative and deceptive techniques used to deceive investors, users, business partners and government regulators.”
They also outline the enormity of Kwon’s alleged fraud.
“Ultimately, investors suffered more than $40 billion in losses as a result of Kwon’s fraud. The victims in this case include individuals and entities in both the United States and abroad who purchased Terraform’s cryptocurrencies directly from Terraform or from third parties, including through cryptocurrency exchanges in the United States and in other countries.
While it is difficult to precisely quantify the number of Kwon victims given the sheer number of purchases and sales of Terraform’s cryptocurrencies and the manner in which these transactions take place (with many transactions in these assets taking place on foreign exchanges and via digital asset wallets or crypto trading accounts without personally identifiable information), the government estimates that the number of victims in this case exceeds hundreds of thousands of individuals and entities, and may total more than one million.”
Kwon was initially arrested by authorities in Montenegro in 2023 after he was caught trying to board a flight to the United Arab Emirates (UAE) with a forged Costa Rican passport.
After the arrest of the Terra founder, both the United States and South Korea wanted to extradite him. The highest court in Montenegro ruled in favor of the US in December.
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Generated image: Midjourney