Crypto fugitive Do Kwon arrested in Montenegro

Do Kwon, figure and co-founder of TerraForm Labs

Do Kwon, figure and co-founder of TerraForm Labs

The Montenegrin police got hold of Do Kwonthe founder of TerraForm Labs.

This Thursday, on Twitter, the Minister of Interior of MontenegroFilip Adzic, said that the country’s authorities had arrested a person suspected of being the famous and much sought-after South Korean crypto entrepreneur Do Kwon.

The former “king of crypto-currency”, which is responsible for losses of more than $ 40 billion, is being held at the airport in Podgorica with forged documents, and South Korea, the United States and Singapore are demanding the same. We are waiting for official confirmation of the identity,” said the announcement.

The local newspaper Vijesti covered the news. The information was later confirmed by Interpol.

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Kwon was arrested with Hon Chang Joon (Terraform’s CFO) while “attempting to travel to Dubai using falsified Costa Rican travel documents,” Montenegro’s Ministry of Interior wrote in a statement.

Wanted for 6 months by the authorities

Under arrest in South Korea, the country where Terraform Labs was based, since September, Do Kwon would have joined Europe in order to escape the authorities.

Last month, the US Securities and Exchange Commission filed suit against TerraForm Labs and its founder. The issuer of the deceased TerraUSD is accused of having set up a “fraudulent scheme”.

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The algorithmic stablecoin issued by Terraform lost its dollar peg last spring and never regained it. TerraUSD was supposed to maintain its value at $1 through algorithms and its sister cryptocurrency LUNA.

The explosion of the Terra ecosystem triggered several high-profile bankruptcies, including the crypto hedge fund 3AC. This was one of the most notable events of 2022 along with the surprise bankruptcy of FTX in the fall.

Article updated on 03/24/2023 at 06:30: The news has been confirmed by the government of Montenegro and Interpol

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