(Podgorica) The South Korean founder of the cryptocurrency Terra, Do Kwon, has been charged in Montenegro with falsifying documents, police announced on Friday, the day after he was arrested in the capital Podgorica along with his chief financial officer.

“A complaint has been filed against both individuals for the crime of falsification of documents,” police said.

Mr. Kwon is the founder of Terraform Labs, parent company of the “stable cryptocurrency” Terra which collapsed in May 2022. He is accused of fraud in the crash which cost investors approximately $40 billion.

Shortly after his arrest, a United States federal jury brought eight counts against Do Kwon, including stock fraud and online fraud.

In South Korea, where prosecutors announced on Friday that Seoul would seek his extradition, Mr. Kwon is also wanted for violations of financial market rules. He is suspected of having fled the country for Singapore at the time of the May 2022 crash.