Montenegro officials charged fugitive South Korea cryptocurrency entrepreneur Do Kwon for forging documents, police said Friday, a day after he and a travel companion were arrested in the capital Podgorica.

"A criminal complaint was filed against both persons for the criminal offence of document forgery," Montenegro's police said.

Kwon, whose full name is Kwon Do-hyung, has been accused of fraud over his company Terraform's dramatic collapse last year, which wiped out about $40 billion of investors' money and shook global crypto markets.

South Korean prosecutors told AFP earlier on Friday that they would seek his extradition.

He is wanted in South Korea for violations of the country's capital markets act.

The 31-year-old was arrested at the Podgorica airport in Montenegro on a South Korean warrant, the country's interior ministry said Thursday.

Soon after, the United States charged him with eight counts, including securities fraud and wire fraud, which followed a lawsuit by the US Securities and Exchange Commission.