Do Kwon, co-founder of Terraform Labs, will face securities fraud charges in the United States

Terraforms Labs CEO Do Kwon spent the last day of 2024 extraditing it to the United States, Reuters Reports. Kwon faces charges in the United States for “organizing a multi-billion-dollar crypto-asset securities fraud involving an algorithmic stablecoin and securities of other crypto-assets.” The Terraforms co-founder has been detained in Montenegro since March 2023, when he tried to board a flight with a fake passport — six months later Interpol issued a “Red Notice”. To arrest him.

South Korea-based Terraforms Labs wiped out $40 billion from the cryptocurrency market when its stablecoins TerraUSD and Luna were found to be unstable and collapsed in May 2022. Kwon had already fled South Korea the previous month.

The United States announced its charges in February 2023, with SEC Chairman Gary Gensler said“We allege that Terraform and Do Kwon failed to provide the public with full, fair and honest disclosure as required for a range of crypto asset securities, most notably Luna and TerraUSD. We also allege that they committed fraud by repeating false information and misleading statements to build confidence before causing significant losses to investors.” “. South Korea issued similar accusations.

Montenegro has no extradition treaties with the United States or South Korea. The request has been implemented in court over the past year and a half, with Montenegrin Justice Minister Bojan Bozovic ordering Kwon’s extradition last week. Terraform Labs has applied for… Chapter 11 bankruptcy protection In the United States last January.