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

Terraforms Labs CEO Do Kwon set a 2024 deadline for US deployment, Reuters reports. Kwon is accused in the US of “creating a multi-billion dollar crypto asset securities fraud related to algorithmic stablecoins and crypto asset securities.” The co-founder of Terraforms has been in Montenegro since March 2023, when he tried to board a plane with a fake passport – six months later. Interpol has issued a “red” notice. to be arrested.

South Korea-based Terraforms Labs withdrew $40 billion from the crypto market when its TerraUSD and Luna stablecoins were unstable and collapsed in May 2022. Kwon had already fled South Korea last month.

The US announced its charges in February 2023, and SEC Chairman Gary Gensler says“We say that Terraform and Do Kwon failed to provide the public with adequate, fair, and truthful information as required for the security of many crypto assets, especially for Luna and TerraUSD. We also say that they committed fraud by repeating false and misleading statements to create trust before costing investors more money money.” South Korea has also filed similar cases.

Montenegro has no relations with the US or South Korea. The request was made in court last year and a half, with Montenegro’s Justice Minister Bojan Bozovic ordering Kwon’s extradition last week. Terraform Labs was commissioned Chapter 11 bankruptcy protection in the US last January.