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The most significant trigger for the major collapse in mid-2022 was the fall of the billion-dollar Terra ecosystem. Prices plummeted from double digits to below zero, and investors holding UST stablecoin witnessed the melting of the dollar equivalent in their wallets.
According to the latest report shared by the WSJ, senior officials in Montenegro are inclined to extradite Kwon to the US, not South Korea. Terraform Labs continues its legal battle with the SEC.
Kwon, who has been detained in the Balkan country since March, is wanted by both the US and South Korea. Both countries are striving to prosecute and punish him for the distress suffered by their citizens, with the $40 billion collapse being primarily attributed to a flaw in the token mechanism created by Kwon.
It has been revealed that Do Kwon was also responsible for the crash of another algorithmic stablecoin. Nonetheless, the founder of Terra managed to remain anonymous in the previous project, facilitating the growth of the Terra ecosystem to over $40 billion.
Justice Minister Andrej Milovic may soon make an official announcement regarding the extradition.
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