Arrested yesterday in Montenegro, Do Kwon, the founder of Terra, is facing several charges in the United States. U.S. prosecutors are currently seeking his extradition.
The 31-year-old was arrested on Thursday at Podgorica airport along with his chief financial officer, Hon Chang Joon. Do Kwon is the founder of Terraform Labs, the parent company of the “stable cryptocurrency” Terra that collapsed in May 2022. He is accused of fraud in the crash, which caused investors to lose about $40 billion (37 billion euros).
Referring to the arrest of “a person suspected of being one of the most wanted fugitives in the world,” Montenegrin Interior Minister Filip Adzic said Thursday that the two men had been apprehended after a South Korean warrant.
Following his arrest, U.S. prosecutors said they are pursuing the former crypto industry star on eight counts, including fraud, the FinancialTimes reports.
According to U.S. authorities, Do Kwon notably “deceived individuals” about the Terra blockchain, “including its technology and the extent to which it had been adopted by users.” The U.S. Attorney’s Office for the Southern District of New York is seeking his extradition.
Last month, the U.S. SEC also announced it was prosecuting the South Korean for running a “fraudulent scheme.”
Also under arrest in South Korea, the former Terraform Labs chief is also under investigation in Singapore. Kwon had reportedly moved to Europe to escape the authorities.
As a reminder, the collapse of the Terra ecosystem last spring is one of the most significant events of 2022 along with the fall of FTX in the fall.