Terraform Labs Cofounder Do Kwon Finally Arrested by Interpol
Terraform Labs co-founder Do Kwon has finally been arrested by Interpol in Montenegro within the territory of the Balkan nation according to a March 23 post from Filip Adzic, minister of the interior of Montenegro.
U PODGORICI UHAPŠEN JEDAN OD NAJTRAŽENIJIH SVJETSKIH BJEGUNACA— Filip Adzic (@filip_adzic) March 23, 2023
Crnogrska policija lišila je slobode lice za koje se sumnja da je jedan od najtraženijih bjegunaca, južnokorejski državljanin Do Kwon, suosnivač i izvršni direktor Terraform Labs sa sjedištem u Singapuru.
The former blockchain executive has been declared wanted by Interpol for his role in the $40 billion collapse of the Terra ecosystem in 2022.
It was gathered that the Terraform Labs former blockchain executive’ aide, Han Mo, was also arrested in Podgorica during the sting operation.
Meanwhile, the National Police Agency of South Korea asserted that it is waiting for fingerprint information from Montenegro authorities in order to ascertain if the arrested individuals are truly Do Kwon and Han Mo.
It should be noted that Do Kwon has been on the run since Interpol issued a red notice for his arrest on Sept. 26, 2022.
While Montenegro does not have an extradition agreement with either Singapore or South Korea, it is believed that it has an old extradition treaty with the U.S. and has complied with extradition requests for U.S. nationals in the past.
Do Kwon Undergoes Fraud Charges
In light of the recent development, Terraform Labs CEO Do Kwon has been charged with fraud by United States prosecutors in New York following his arrest in Montenegro.
This was contained in a court filing signed by United States Attorney Damian Williams. Do Kwon faces eight separate counts, namely: commodities fraud, securities fraud, wire fraud, conspiracy to defraud and engage in market manipulation.
Do Kwon's US charges:— Pledditor (@Pledditor) March 23, 2023
-Conspiracy to Defraud
-Commodities Fraud (2 counts)
-Securities Fraud (2 counts)
-Wire fraud (2 counts)
-Market manipulation pic.twitter.com/eBWcugCRCe
However, the U.S. prosecutors established that the first charge falls under its jurisdiction because Do Kwon has made a couple of false and misleading statements.
The other four charges were related to Kwon’s alleged involvement in trading strategies that were purposely created to alter the market price of USTC.
Kwon’s arrest had negatively impacted Terraform Labs’ coin LUNC, which has dropped by 8.2% within the past 24 hours according to data from CoinLore.