Terraform Labs founder Do Kwon is facing extradition proceedings after being charged with forgery in Montenegro, according to a report by AFP. The South Korean national, who has been on the run since the collapse of stablecoin terraUSD, was arrested at Podgorica airport along with a second person.

Montenegro police have filed a criminal complaint against both individuals for the criminal offence of document forgery, as reported by AFP. Kwon is set to appear in a Podgorica court later on Friday, although it remains unclear which country has issued the extradition request.

The collapse of terraUSD last year sent shockwaves through the cryptocurrency markets, and Kwon has been on the radar of federal prosecutors in New York for some time. In fact, they charged him with fraud just hours after his arrest in Montenegro.

Kwon’s case highlights the importance of transparency and accountability in the crypto industry. As cryptocurrencies continue to gain mainstream acceptance, regulators and law enforcement agencies are stepping up their efforts to combat fraud and other criminal activities. Investors should be cautious when considering any kind of crypto-related venture and conduct due diligence before committing any funds.