Do Kwon, the co-founder of Terraform Labs, is set to be extradited to the United States to face charges of fraud. Despite arguments from Kwon's legal team, the High Court of Podgorica in Montenegro has turned down a request to extradite him to South Korea before the US. Kwon has been facing detention in Montenegro since March 2023 and was sentenced to a four-month prison term for document forgery in June. Terraform Labs has also filed for Chapter 11 bankruptcy protection in the US, with CEO Chris Amani stating that it is a strategic move to contest a fraud lawsuit brought by the US Securities and Exchange Commission.