Terraform Labs co-founder Do Kwon is set to be extradited to the United States to face criminal charges, according to sources familiar with the matter. Justice Minister Andrej Milović in Montenegro plans to grant the extradition request made by U.S. officials. Kwon, who was arrested in Montenegro for using falsified travel documents, has also been charged in both the U.S. and South Korea for his alleged involvement in the collapse of Terraform Labs.

If extradited to the U.S., Kwon will face eight charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation during his time at Terra. The U.S. Securities and Exchange Commission has also accused Kwon of defrauding investors in crypto schemes. The announcement of his extradition is expected to be made public soon.

The collapse of Terraform Labs in May 2022 triggered a cryptocurrency market downturn, with TerraUSD (UST) depegging from the U.S. dollar and several firms, including Voyager Digital, BlockFi, Celsius Network, and FTX, filing for bankruptcy.

Prior to his arrest in Montenegro, Kwon’s whereabouts were largely unknown, with speculation that he was based in Singapore. While he will face officials in the United States first, there is a possibility that Kwon could still face charges in South Korea. Kwon has denied any involvement in fraud.

Source: Wall Street Journal

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Asia
Countries	🇲🇪 🇺🇸
Sentiment	neutral
Relevance Score	1
People	Andrej Milović, Do Kwon
Companies	BlockFi, Terraform Labs, Voyager Digital, Celsius Network, U.S. Securities and Exchange Commission, FTX
Currencies	TerraClassicUSD
Securities	None