Cryptocurrencies

Terraform Goes on Trial as Do Kwon Awaits Extradition in Montenegro

  • Co-founder Do Kwon faces criminal charges in US, South Korea
  • Implosion of Terraform Labs in 2022 wiped out $40 billion
Police escort Do Kwon from court in Podgorica, Montenegro, on March 23.Photographer: Savo Prelevic/AFP/Getty Images
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Terraform Labs Pte. began trial Monday over civil fraud claims tied to the 2022 implosion of its TerraUSD stablecoin, while co-founder Do Kwon remains in Montenegro waiting to learn whether he’ll be extradited to the US or South Korea to face criminal charges.

“Terra was a fraud, a house of cards,” a lawyer for the US Securities and Exchange Commission told jurors in Manhattan federal court. “And when it collapsed, investors lost nearly everything.”