As first reported by Bloomberg, Do Kwon, co-founder of failed cryptocurrency startup Terraform Labs, will be extradited from Montenegro to the United States on federal fraud charges.
Kwon is facing charges in both the United States and South Korea. Terraform Labs' cryptocurrencies TerraUSD and Luna crashed in 2022, costing investors more than $40 billion in losses.
Mr. Terraform and Mr. Kwon were found personally liable for fraud in April following a civil trial on complaints filed by the U.S. Securities and Exchange Commission. Terraform agreed to pay $4.5 billion to settle its lawsuit with the SEC.
Kwon was arrested in March 2023 at the airport in Montenegro's capital Podgorica while preparing to board a flight to Dubai. It is unclear when Montenegro plans to release Kwon to the United States or whether the government's latest decision will override the August order for Kwon's extradition to South Korea.