Terraform Labs co-founder Do Kwon will face fraud charges in the U.S.

Do Kwon, the co-founder of collapsed cryptocurrency startup Terraform Labs, will be extradited from Montenegro to the U.S. to face federal fraud charges, as first reported by Bloomberg.

Kwon faces charges in both the U.S. and South Korea; Terraform Labs’ TerraUSD and Luna cryptocurrencies crashed in 2022, causing investors to lose over $40 billion.

Terraform and Kwon were found personally liable for fraud following a civil trial on U.S. Securities and Exchange Commission allegations 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 Montenegrin capital, while preparing to board a flight to Dubai. It’s unclear when Montenegro plans on releasing Kwon to the U.S., and whether the government’s latest decision supersedes its order in August to extradite Kwon to South Korea.