Do Kwon, co-founder of Terraform Labs, will face fraud charges in the United States

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

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

Terraform and Kwon were found personally liable for the fraud after a civil trial over the SEC allegations in April. Terraform It agreed to pay $4.5 billion to settle the case with the Securities and Exchange Commission.

Kwon was arrested in March 2023 at the airport in Podgorica, the capital of Montenegro, as he was preparing to board a flight to Dubai. It is unclear when Montenegro plans to release Kwon to the United States and whether the government’s latest decision replaces its August order to extradite Kwon to South Korea.