Terra co-founder Do Kwon plans to stay in Montenegro until February

Terraform Labs co-founder Do Kwon, who is expected to be extradited to the United States to face criminal charges, will reportedly remain detained in Montenegro until February.

According to a December 12 Bloomberg report, U.S. and South Korean authorities asked Montenegrin officials to detain Kwon for two more months after his sentence ends. The co-founder of Terraform Labs was arrested in Montenegro in March and sentenced to four months in prison for using forged travel documents.

Kwon, a South Korean national who previously lived in Singapore, has been indicted in the United States and South Korea for his role in the Terra collapse. The Wall Street Journal (WSJ) reported on the 7th that the United States would arrest Mr. Kwon before Korea. Both countries have extradition requests pending at the time of publication.

Related: Prosecutors say, “Dogwon can serve time in both the U.S. and Korea.”

If extradited to the United States, Kwon faces eight criminal charges, including commodities fraud, securities fraud, wire fraud, conspiracy to defraud, and market manipulation charges related to his work at Terraform Labs. The U.S. Securities and Exchange Commission (SEC) also indicted Mr. Kwon on charges of “defrauding investors through cryptocurrency trading.”

Terra collapsed in May 2022, which many considered a significant event, triggering a cryptocurrency market downturn. TerraUSD (UST) was pegged to the US dollar and later a number of companies filed for bankruptcy, including Voyager Digital, BlockFi, Chelsea Network, and FTX.

magazine: Terra fell because it took pride as collateral — Knifefight