Terraform Labs co-founder Do Kwon will face securities fraud prices in the US.

Terraforms Labs CEO Do Kwon spent the final day of 2024 being extradited to the US, Reuters reports. Kwon faces prices in the US for “orchestrating a multibillion-dollar crypto asset securities fraud involving an algorithmic stablecoin and different crypto asset securities.” The Terraforms co-founder has been detained in Montenegro since March 2023, when he tried to board a flight with a faux passport six months later. Interpol issued a “red notice” arrest warrant for his arrest.

South Korea-based Terraforms Labs wiped $40 billion from the crypto market when its TerraUSD and Luna stablecoins proved much less steady and collapsed in Could 2022. Kwon had already fled South Korea the month earlier.

The US introduced its prices in February 2023, SEC Chairman Gary Gensler Says“We allege that Terraform and Do Kwon failed to offer the general public with full, honest and truthful disclosure as required by a large number of crypto asset securities, together with for Luna and TerraUSD. We additionally allege that they dedicated fraud by repeating false and deceptive statements to construct belief earlier than inflicting devastating losses for traders” South Korea has made comparable accusations.

Montenegro doesn’t have extradition treaties with the US or South Korea. The request has been heard in court docket over the previous yr and a half, with Montenegro’s Justice Minister Bojan Bozovic ordering Kwon’s extradition final week. Terraform Labs has filed an software Bankruptcy protection (Chapter 11) in the US final January.