The founder of the collapsed Terra-Luna crypto project, Kwon Do-hyeong, should be extradited from Montenegro to South Korea to face trial, according to the prosecutor leading the investigation, as reported by the Wall Street Journal on May 5.

Kwon is detained in Montenegro for allegedly traveling on a forged passport, and both South Korea and the U.S. have requested his extradition to face charges related to the US$40 billion crypto project’s collapse.

Terra’s USD stablecoin and Luna sister cryptocurrency collapsed in May 2022, with prosecutors from both countries alleging that the project defrauded investors and violated financial laws.

Dan Sung-han, the director of Seoul Southern District’s joint financial crimes team, said that most of the evidence and key accomplices in Kwon’s alleged crypto fraud are based in South Korea, and that if convicted, he may face over 40 years in prison.

Kwon has repeatedly denied all allegations against him. Meanwhile, Terraform Labs co-founder Shin Hyun-seung and seven Terra associates were indicted by Seoul prosecutors for alleged fraud on April 25, and two additional Terra associates for alleged bribery.