Do Kwon, the co-founder of the now-defunct cryptocurrency firm Terraform Labs, will be extradited to the United States to face federal fraud charges related to the catastrophic collapse of the TerraUSD stablecoin and its sister token Luna. The Montenegro Ministry of Justice announced the decision on Friday, bringing an end to the months-long dispute between South Korea and the US over who would get to prosecute Kwon.

The extradition decision comes over a year after Kwon's arrest in Montenegro, and marks a significant milestone in the ongoing saga surrounding the TerraUSD crash, which resulted in investors losing a staggering $40 billion in 2022. Both the US and South Korea had issued extradition requests for Kwon, with the US seeking to try him on charges of wire fraud, commodities fraud, securities fraud, and conspiracy to defraud and engage in market manipulation.

According to a machine-translated statement from Montenegro's Ministry of Justice, "it was concluded that most of the criteria provided for by law support the extradition request of the competent authorities of the United States of America." However, it remains unclear when Montenegro plans to release Kwon to the US, and whether this decision is final. In August, Montenegro had ruled to extradite Kwon to South Korea, adding a layer of complexity to the situation.

Kwon's legal troubles are far from over, with the co-founder already agreeing to pay over $4.5 billion to settle a separate lawsuit from the Securities and Exchange Commission in June. The collapse of TerraUSD and Luna had far-reaching consequences for the cryptocurrency market, and Kwon's extradition to the US is likely to have significant implications for the industry as a whole.

The case serves as a stark reminder of the risks and uncertainties inherent in the cryptocurrency space, and the need for greater regulatory oversight and accountability. As the industry continues to grapple with the fallout from the TerraUSD crash, Kwon's extradition to the US is likely to be closely watched by investors, regulators, and industry insiders alike.

With the extradition decision now out of the way, attention will turn to the specifics of Kwon's prosecution in the US. Will he be able to negotiate a plea deal, or will he face the full force of the law? Only time will tell, but one thing is certain – the consequences of the TerraUSD crash will continue to reverberate throughout the cryptocurrency industry for years to come.