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 each the U.S. and South Korea; Terraform Labs’ TerraUSD and Luna cryptocurrencies crashed in 2022, inflicting buyers to lose over $40 billion.
Terraform and Kwon had been discovered personally responsible 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, whereas getting ready to board a flight to Dubai. It’s unclear when Montenegro plans on releasing Kwon to the U.S. and whether or not the authorities’s newest choice supersedes its order in August to extradite Kwon to South Korea.