Following the recent arrest of Do Kwon, the founder of Terra, in Montenegro, U.S. prosecutors have filed criminal charges against him on allegations of fraud, securities fraud, wire fraud, commodity fraud, and conspiracy to manipulate the market.
The charges come as American law enforcement seeks to extradite Kwon to the United States.
Prosecutors have accused Kwon of making false statements for years on social media and television, as well as conspiring with accomplices to defraud buyers of cryptocurrencies issued by Terraform Labs.
They claim that Kwon deceived investors about the effectiveness of the algorithm that supposedly guaranteed the stability of the UST price and manipulated the market.
Interestingly, prosecutors allege that Kwon even contacted representatives of Jump Crypto, a US-based investment and trading firm, to help him manipulate the market price of UST. Kwon’s arrest comes as a shock to the crypto community.