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

Do Kwon, the founder of Terraform Labs, which caused the collapse of the cryptocurrency, will be deported from Montenegro to the US to face fraud charges, as before. report and Bloomberg.

Kwon faces charges in the US 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 guilty of fraud following charges filed by the US Securities and Exchange Commission in April. Terraform agreed to pay $4.5 billion to settle the case with the SEC.

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 US and whether the government’s latest decision overrides its August order to extradite Kwon to South Korea.