He was the most wanted man in the cryptocurrency universe. Do Kwon has been arrested in Podgorica, the capital of Montenegro. He is responsible for collapse of the stablecoin TerraUSD and of the Luna cryptocurrencywhich made vanish 40,000 million dollars.
according to account Bloombergat the time of arrest Do Kwon was accompanied by han chang joonthe CFO of Terraform Labs, the company through which TerraUSD and Luna operated.
both carried fake passports of Costa Rica and Belgium. The United States and South Korea have requested their extradition.
The FBI accuses him of fraud and market manipulation. He claims Kwon misled investors and customers with false statements about Terra’s technology and product offerings.
Do kwon arrested in Montenegro
The US Securities and Exchange Commission had already filed civil charges against Kwon and Singapore-based Terraform Labs. He accused the cryptocurrency guru of “orchestrating a multi-billion dollar fraud of crypto assets related to an algorithmic stablecoin and other crypto assets“, as explained by New York Post.
Do Kwon became a billionaire, and world famous, when the stablecoin associated with the dollar, TerraUSDand the Luna cryptocurrencyThey went up like foam.
But in May 2022 an investor crisis caused the collapseleaving a hole of more than 40,000 million dollars, and a sudden fall in the crypto market. Together with the bankruptcy of FTX, they are the most serious fiascoes in the cryptocurrency market.
After taking his South Korean passport, Do Kwon was on the hunt. His arrest in Montenegro ends his escapade. It was speculated that he was hiding in Serbia, because he has no extradition treaty with South Korea, and the rumors were not far off the mark.
Do Kwonhe founder of Terraform Labs and creator of TerraUSD and the cryptocurrency MoonYou will now have to face serious fraud chargeswhich could see him spend several years in jail, given the magnitude of the collapse of his crypto business.