Terra co-founder Do Kwon will stay in Montenegro until February: report
Terraform Labs founder Do Kwon will remain in a Montenegrin prison until February, where he is expected to be extradited to the United States to face criminal charges.
According to a Dec. 12 Bloomberg report, US and South Korean officials have asked Montenegrin officials to hold Kwon for two more months after he completes his prison sentence. The co-founder of Terraform Labs was arrested in March in Montenegro for using forged travel documents and sentenced to four months in prison.
Kwon, a South Korean national previously based in Singapore, has been charged in the United States and South Korea with being involved in the collapse of Terra. The Wall Street Journal reported on December 7 that the US would seize Kwon before South Korea. Both countries have extradition requests pending at the time of publication.
RELATED: Do Kwon may serve time in US and South Korean prisons, prosecutors say.
If extradited to the United States, Kwon faces eight felony charges related to his time at Terraform Labs, including securities fraud, securities fraud, wire fraud and market manipulation by deception. The US Securities and Exchange Commission has also accused Kwon of “defrauding investors in a crypto scheme”.
In May 2022, Terra crashed, which many consider a major event, starting the crypto market crash. TerraUSD (UST) originated from the US dollar and many firms have since filed for bankruptcy, including Voyager Digital, BlockFi, Celsius Network, and FTX.
Magazine: Terra falls because she uses hubris as leverage – Knifefight
