Terraform Labs co-founder Do Kwon will face fraud charges in the US

Do Kwon, the co-founder of collapsed cryptocurrency startup Terraform Labs, will first be extradited from Montenegro to the United States to face federal fraud charges. informed By Bloomberg.

Kwon faces charges in both the US and South Korea; Terraform Labs’ cryptocurrencies TerraUSD and Luna collapsed in 2022, causing investors to lose more than $40 billion.

Terraform and Kwon were indicted in April for fraud after a civil lawsuit filed by the U.S. Securities and Exchange Commission. Terraform It agreed to pay $4.5 billion to settle the case with the SEC.

Kwon was arrested in March 2023 at the airport of Podgorica, the capital of Montenegro, while preparing to fly to Dubai. It is unclear when Montenegro plans to release Kwon to the United States, and whether the government’s latest decision supersedes an order it issued in August to extradite Kwon to South Korea.