Nigeria(CoinChapter.com): Cryptocurrency media outlet Bankless has reported the arrest of Terra founder Do Kwon in Montenegro. According to Bankless, Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon.
The Terraform Labs CEO was behind losses of more than 40 billion dollars and he’s considered one of the world’s most wanted fugitives.
Why Is Do Kwon Wanted?
After carrying out a multi billion dollar cryptocurrency scam with his company, the U.S. Securities and Exchange Commission (SEC) placed Do Kwon on its wanted list. The scam led to the collapse of TerraUSD which is Terraform Labs’ stable coin, costing investors more than $40 billion.
The SEC stated that Do Kwon and Terraform Labs misled investors into believing in the stability of TerraUSD and its ability to increase in value. Although it was linked to LUNA, the price failed almost to zero which is below its dollar peg.
This collapse brought about the “cryptocrash” trend online in 2021 as traders of other cryptocurrencies sold their assets. Do Kwon during one of his press times then, revealed that he was heartbroken about the pain his invention caused the crypto market.
In addition to that, the Securities And Exchange Commission claimed that Do Kwon lied to his clients that a Korean electronic mobile payment app, Chai, uses Terraform blockchain to process payments. SEC Chair Gary Gensler admitted that Terraform and Do Kwon did not give the public proper and truthful details about its stable coin which was linked to LUNA.
How Do Kwon Got Arrested In Montenegro
Since getting charged by the U.S. SEC, Do Kwon has been on the run. In September 2022, a court in Seoul filed for his arrest after he was allegedly hiding in Singapore. However, he denied such allegations even though the court told Interpol to revoke his passport.
Again, in December, the South Korean government issued an arrest warrant for him as he was believed to be in Serbia. However, the news gave birth to the Terra Classic (LUNC) token, which is a reinvention of the TerraUSD.
Do Kwon’s alleged arrest in Montenegro happened at the Podgorica airport after the police apprehended an individual with falsified documents, according to the country’s minister of interior Filip Adzic via a tweet. However, the minister of interior added that he is waiting for official confirmation of the suspect identity.
