Federal prosecutors in New York have filed charges against Terraform Labs (TFL) co-founder and CEO Do Kwon, hours after he was arrested in Montenegro.
According to the document, he has been charged with 8 counts, including conspiracy to defraud and market manipulation, securities fraud and misleading investors.
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The regulator has said:
"Kwon agreed with others to defraud purchasers of cryptocurrencies issued by TFL, by deceiving those purchasers about the effectiveness of the algorithmic mechanism that purportedly ensured the stability of UST's price through false statements and market manipulation."
Notably, the lawsuit has been filed in the Southern District of New York. A spokesperson for the US Attorney's office has clarified that the Department of Justice intends to seek Kwon's extradition to the United States.
Following the collapse of Terra, the Seoul Southern District Prosecutor's Office became interested in TFL's activities and the court issued an arrest warrant for Do Kwon and five others.