Do Kwon, the founder of Terraform Labs, has gone on trial in Montenegro along with another South Korean citizen for using forged identification documents in the country. The trial, which started on Thursday in the capital city of Podgorica, has seen Do Kwon and the other defendant plead not guilty to the charges, and both have offered €400,000 each to be released on bail. The Montenegrin court has not yet made a decision on the matter.

Do Kwon was arrested in Montenegro in March this year, after an international arrest warrant was issued in connection with the $40 billion crash of the cryptocurrency he founded, which caused widespread financial damage for holders of the TerraUSD digital currency and its floating sister currency, Luna.

Both South Korea and the United States have requested Do Kwon’s extradition from Montenegro, with South Korea asking Interpol to circulate a “red notice” to help find and apprehend the 31-year-old. Kwon and the other defendant were arrested at Podgorica Airport on March 23, where they were trying to leave for Dubai with fake Costa Rican passports, according to authorities.

Both accused might be extradited after spending five years in Montenegro for forging documents. Before arriving in Montenegro, both defendants were believed to have been hiding in Serbia, but they moved after South Korean investigators tracked them down and asked Serbian authorities to detain them, according to the South Korean Justice Ministry.

Due to the collapse of digital currencies in May 2022, Do Kwon and five people affiliated with Terraform have been charged with fraud and financial offences. TerraUSD was designed as a stablecoin, which is a currency that is pegged to stable assets such as the US dollar to prevent large price fluctuations. However, the steady currency plummeted far below its $1 peg in May, causing approximately $40 billion in market value to be erased for TerraUSD and Luna holders.