Do Kwon, has been arrested in Montenegro according to a blog post from Filip Adzic, minister of the interior for Montenegro
The CEO of Terraform Labs, has been charged with fraud by United States prosecutors in New York, He faces eight separate counts, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.
One of the charges against Kwon is conspiracy to defraud, as U.S. prosecutors claim that he made false and misleading statements about the adoption of the Terra blockchain during a TV interview that was transmitted to the Southern District of New York.
The remaining charges are related to purportedly misleading statements about the effectiveness of the TerraClassicUSD stablecoin (USTC) to maintain its peg with the U.S. dollar, as well as Kwon’s alleged involvement in trading strategies designed to alter the market price of USTC.
Kwon was reportedly arrested in Montenegro while attempting to fly to Dubai with forged travel documents from Costa Rica.
The Basic State Prosecution Office of Montenegro may also press criminal charges against Kwon and his business partner for using forged travel documents. South Korean prosecutors had issued an arrest warrant against Kwon in September 2022, and Interpol had issued a red notice for his arrest in the same month.
The charges against Kwon relate to his alleged role in the collapse of the $40 billion Terra Luna Classic (LUNC) token and TerraClassicUSD stablecoin (USTC) in May 2022.
Do Kwon Arrest
In Summary Do Kwon, the CEO of Terraform Labs, has reportedly been arrested in Montenegro along with his business partner Hon Chang Joon. The arrest comes as a result of charges of fraud brought against Kwon by U.S. prosecutors in New York. The charges relate to his alleged involvement in the collapse of the $40 billion Terra Luna Classic (LUNC) token and TerraClassicUSD stablecoin (USTC) in May 2022. Kwon and his business partner were reportedly attempting to fly to Dubai with forged travel documents from Costa Rica.