Terra Classic (CRYPTO: LUNC), the native token of the Terra ecosystem, rallied on New Year’s Day amid disgraced co-founder Do Kwon’s extradition from Montenegro to the U.S.

Kwon, co-founder of Terraform Labs, has been extradited from Montenegro to the United States. Kwon is facing charges in the U.S. for allegedly misleading investors about the stability of the TerraUSD cryptocurrency.

What Happened: LUNC surged over 4% in the last 24 hours to a market capitalization of $620 million. The coin’s trading volume jumped 30.68% to $42.22 million, implying significant buying interest.

The rally came after fugitive cryptocurrency mogul Kwon was handed over to U.S. law enforcement officers and Federal Bureau of Investigation agents by Montenegro authorities, according to a Reuters report.

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Why It Matters: The extradition of Kwon ended a legal tug-of-war between the U.S. and South Korea over competing extradition requests.

The High Court in Montenegro initially ruled in February 2024 to extradite Kwon to the U.S., but the decision was changed in March in favor of his home country, South Korea.

Last week, Montenegro’s Justice Minister Bojan Bozovic ordered Kwon’s extradition to the U.S. following a Supreme Court ruling that all legal conditions were met.

Kwon has been found guilty of defrauding cryptocurrency investors during the infamous Terra (CRYPTO: LUNA) collapse in 2022—an event that precipitated a cryptocurrency bear market.

Price Action: At the time of writing, LUNC, the rebranded avatar of LUNA, was exchanging hands at $0.0001128, up 4.26% in the last 24 hours, according to data from Benzinga Pro. 

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.