Hours after Terraform Labs founder Do Kwon was arrested by police in Montenegro, federal prosecutors in New York charged him with fraud. According to the indictment, Kwon was charged with conspiracy to commit fraud, commodities fraud, securities fraud, wire fraud and conspiracy to manipulate markets. In addition, a spokesman for the Manhattan Federal Attorney's Office said the Justice Department will seek to extradite Do Kwon to the United States.

In February of this year, the U.S. Securities and Exchange Commission (SEC) filed civil charges against Terraform and Do Kwon, accusing them of defrauding investors and selling unregistered securities and security swaps.

Yesterday, Montenegrin Interior Minister Filip Adzic announced that Do Kwon was arrested by police at Podgorica Airport in Montenegro using forged documents early Thursday. The South Korean National Police Agency later confirmed this. (CoinDesk)