Do Kwon, the chief executive officer of Terraform Labs, was finally arrested on Thursday in Podgorica, Montenegro. Referring to Kwon as most wanted fugitives and South Korea National, the Montenegrin police said they detained someone who is suspected as the Terraform Labs CEO. Authorities in various jurisdictions across the world have been on the look out for Kwon over the last few months. The Terra network collapse in mid-2022 led to a massive loss of investor money as the ripple effect spread widespread in the crypto market.
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Do Kwon Arrest
According to a statement by the Interior Minister of Montenegro, Kwon was detained at the Podgorica airport. A translation of the minister’s statement said,
“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.”
It may be recalled that the Terraform Labs CEO last year said he was not “on the run.” He made the comments in September 2022 in response to reports that said otherwise. Kwon said at the time that he was in full cooperation with the government agencies.
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SEC Action On Kwon
In February 2023, the U.S. Securities and Exchange Commission (SEC) filed with a U.S. federal court in Manhattan accusing the Terra LUNA creator of “of orchestrating a $40 billion securities fraud involving LUNA and Terra’s algorithmic stablecoin TerraUSD (UST).” SEC Chair Gary Gensler said that Kwon failed to provide investors with complete information for ‘crypto asset securities’ LUNA and Terra USD. Gensler added that Terraform and Kwon committed fraud by repeating false and misleading statements before causing devastating losses for investors.
Meanwhile, the Terra LUNA price fell sharply in response to the news of Do Kwon arrest.
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