More than a year after the crash of the Terra ecosystem, Do Kwon, its founder is now set to be extradited from Montenegro to the US, to face trial for his involvement in one of the most brutal crypto crashes of 2022.
As it stands, Kwon is accused by the US SEC of several crimes ranging from Securities violations to conspiracy, to fraud.
Here's everything to know, and why we might be seeing a massive LUNC rally very soon.
Do Kwon is a citizen of both South Korea and the U.S.
The former Terra founder was arrested in Montenegro at the Podgorica airport, after fleeing the U.S. and attempting to travel again with a fake passport and other documents.
He was detained in Montenegro in March 2023, at the request of the U.S. authorities, who have been looking for ways to have him extradited to face charges of securities fraud, wire fraud, and money laundering.
It gets even more complicated because Kwon also faces criminal charges in his home country of South Korea, where Terra was initially based.
The South Korean prosecutors, like the U.S., have been lobbying for his extradition, on charges that Kwon and others operated an illegal gambling chain using Terra's native token, Luna.
South Korea has been requesting Kwon's extradition from Montenegro, on grounds that the Terra founder should be charged and sentenced in his home country.
Kwon's defence team, led by lawyer Goran Rodić, however, have chosen to invoke the European Convention on Extradition, as well as the Montenegrin Law on International Legal Assistance which states that on extradition, a person can only be sent to one country of preference, where the person has the strongest ties.
Back in December 2023, a Podogorican court initially opted to send Kwon to the US.
This extradition was overturned less than a week later when the Montenegrin Court of Appeals overturned the decision and delayed Kwon's extradition.
However, in February 2024, the High Court of Podgorica rejected South Korea's request and has now opted to send Kwon to the US according to reports from Montenegrin news outlet, Pobjeda.
As justification, the high court insisted that the US has a stronger case than South Korea for prosecuting Kwon, considering how he is a U.S. citizen, and US investors were affected by the Terra crash.
According to the Montenegrin high court's decision, Kwon is expected to be sent to the US within 60 days, unless he appeals again to the Montenegrin Supreme Court or the European Court of Human Rights.
If he is extradited, he will be sent to the U.S. District Court for the Southern District of New York, where the SEC initially filed the lawsuit against him and his company.
According to data from CoinMarketCap, LUNC is performing at a 2% price increase over the last day, as shown.
But what are the odds that we see a rally on the cryptocurrency soon?
To answer this, we can take a look at the daily chart:
As shown in the chart above, the cryptocurrency is trading on top of an ascending trendline, which shows bullish strength.
Moreover, the cryptocurrency appears to be consolidating, and attempting a rebound after a massive rejection from the $0.00028 high from December 2023.
As shown by the chart above, the cryptocurrency is trading nicely above the 20-day EMA and has been consolidating around $0.000122.
From this, we can conclude that even if the 20-day EMA does give way, the bears will only be able to take control if we see a break below $0.0001.
If this doesn't happen, $0.00028 remains a very valid target for $LUNC.
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