According to Montenegro’s minister of interior Filip Adzic, Do Kwon was suspected of being “one of the most wanted fugitives.”
Do Kwon, the co-founder and CEO of Terraform Labs, has been reportedly arrested. Kwon had been on the run for several months before being caught using falsified documents at an airport in Podgorica, the capital city of Montenegro.
Filip Adzic, Montenegro’s minister of interior, announced the arrest in a tweet, saying that Do Kwon was suspected of being “one of the most wanted fugitives” and that authorities were awaiting official confirmation of his identity.
Kwon’s arrest came after he was accused of playing a major role in the $40 billion Terra/LUNA collapse, which had a significant impact on the cryptocurrency markets.
“Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,” Adzic tweeted.
Kwon had been under investigation for the past 11 months since the collapse of the platform, and in September 2022, Interpol issued a red notice requesting law enforcement agencies worldwide to search for and arrest him.
In mid-February, the U.S. Securities and Exchange Commission also charged Terraform Labs and Kwon with defrauding U.S. investors who purchased its crypto assets, LUNA and the stablecoin Terra.
Kwon had denied claims that he was hiding from authorities, but prosecutors refuted those claims. The fact that he was caught using falsified documents at the airport suggests that he was indeed trying to evade authorities.
According to reports, Kwon had fled Singapore, where he had been living, and had made stops in Dubai and Serbia before being arrested in Montenegro. The Korean National Police Agency has confirmed that the suspect appears to be Kwon based on checking his age, name, and nationality on his ID card.
The collapse of the Terra stablecoin had a significant impact on the cryptocurrency markets, with about $40 billion being wiped out. Kwon has been accused of financial fraud, tax evasion, and violating South Korean capital market rules. He has denied these charges and claimed that they are politically motivated.
Kwon’s arrest has been welcomed by many who were affected by the collapse of the Terra platform. As more information about the arrest becomes available, it will be interesting to see how it affects the ongoing investigations and legal proceedings against Kwon and Terraform Labs.
The arrest of his alleged aide, Han Mo, is also a significant development in the case. It is likely that more information will come to light as the investigation progresses, shedding further light on the collapse of the Terra platform and the role played by Kwon and Terraform Labs.
This news is a reminder that the cryptocurrency industry is still largely unregulated and that investors need to be cautious when investing in digital assets. It is essential to conduct thorough research and due diligence before investing in any cryptocurrency to avoid significant losses.
The collapse of the Terra platform is just one example of the potential risks involved in the industry, and investors should be aware of these risks before investing.