Terraform Labs’ Ex-CEO Do Kwon Arrested for Fraud and Conspiracy

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Terraform Labs’ Ex-CEO Do Kwon Arrested for Fraud and Conspiracy
  • Ex-CEO of Terraform Labs, Do Kwon, was arrested in Montenegro for fraud charges by the US authorities.
  • Kwon is charged with eight counts of fraud by federal prosecutors in Manhattan.
  • Terraform Labs co-founder is considered an international fugitive following a warrant for his arrest issued by South Korea.

According to reports, Kwon Do-Hyung, more commonly known as Do Kwon, the ex-CEO of Terraform Labs, has been accused of fraud by U.S. authorities. He was arrested in Montenegro on Thursday following the crash of TerraUSD stablecoin last year.

Late on Thursday, The Wall Street Journal and Bloomberg News reported that Do Kwon was charged with eight counts, including securities fraud, commodities fraud, wire fraud, and conspiracy, by federal prosecutors in Manhattan.

Kwon had been considered an international fugitive after disappearing last fall following a warrant for his arrest issued by his home country, South Korea.

Moreover, Filip Adžić, the Minister of Interior in Montenegro, announced on Thursday morning via Twitter that Do Kwon had been arrested at Podgorica airport. Adžić referred to Kwon as the former “cryptocurrency king,” attributing the loss of over $40 billion to him. The Minister also alleged that Kwon had been found with falsified documents and that South Korea, the USA, and Singapore had made similar claims against him.

Adžić added that Montenegrin police had apprehended “one of the world’s most wanted fugitives” at Podgorica airport. He confirmed that the individual in question was Do Kwon, a South Korean citizen suspected of being involved in fraudulent activities.

The U.S. Securities and Exchange Commission (SEC) had previously accused Singapore-based Terraform Labs PTE Ltd and its CEO of fraud in February. According to a statement from the SEC, both Terraform and Kwon were accused of deceiving and misleading investors while promoting the Luna token, which experienced a crash in May 2022, causing a ripple effect throughout the cryptocurrency industry.