It is currently being reported on Twitter that Do Kwon, founder of the Singapore-based Terraform Labs, has been arrested. Crypto news outlined @BanklessHQ broke the story on Twitter, however no sources were cited.
The arrest is said to have occurred in Podgorica, Montenegro, where he was reportedly detained after traveling with falsified documents.
The arrest follows the revelation that the US Department of Justice is examining the collapse of the TerraUSD stablecoin that occurred last year, which could potentially add to the criminal charges Do Kwon is presently facing. Both the FBI and the Southern District of New York are said to have been questioning former team members in recent weeks.
That revelation meanwhile followed the Securities and Exchange Commission’s action against the crypto developer, whom in February filed a civil fraud complaint against Kwon. The SEC alleges that Kwon and his Terraform Labs deceived investors on the hazards related to the TerraUSD stablecoin, which in May 2022 lost its peg that ultimately resulted in $40 billion in market value being wiped out in the crypto sector.
His recent legal woes in the United States follows similar pressure in South Korea and Singapore for his role in the collapse of Terra, which sent shockwaves throughout the entire crypto sector. Kwon denied being on the run, however he had been in hiding since at least September, when South Korea issued a warrant for his arrest and alerted Interpol.
Information for this story was found via the Twitter and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
