The post Do Kwon’s Arrest in Montenegro Causes Steep Drop in Terra’s LUNA Tokens appeared first on Coinpedia Fintech News

The Montenegrin Minister of Interior has announced that Do Kwon, the co-founder and former CEO of Terraform Labs, has been arrested in Montenegro after a prolonged manhunt. Kwon had reportedly been hiding in Serbia before being apprehended by the authorities in the neighboring country.

Do Kwon Was Detained at the Podgorica Airport with Falsified Documents

Last year, when the stablecoin TerraUSD (UST) and its $40 billion ecosystem collapsed, Do Kwon became the subject of multiple investigations and even appeared on Interpol’s red notice list. The incident caused a ripple effect throughout the cryptocurrency markets. However, Kwon managed to stay out of the authorities radar and hid his location successfully.

However, the long run of Do Kwon finally came to an end as the suspect was apprehended at Podgorica airport using forged documents. Interior Minister Filip Adzic, 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.”

Dritan Abazovic, the Prime Minister of Montenegro, follows Adzic’s unverified account, and the tweet announcing Do Kwon’s arrest was retweeted by Abazovic’s official account. In addition, Adzic’s account has been referenced in previous official tweets as well.

Terra’s LUNA Tokens Experience Sharp Drop Following Do Kwon’s Arrest

The news of Kwon’s arrest in Montenegro sent shockwaves through the crypto market, causing the value of LUNA and LUNC tokens to drop by nearly 8% and 4%, respectively. The Terra market has already been struggling in recent weeks, and Kwon’s arrest has added to the growing concerns of investors.

According to CoinMarketCap, the LUNA token is trading at $1.3, and the LUNC token is hovering at $0.0001228, following a massive selloff from traders and investors amid the FUD situation.

According to reports, Do Kwon sought refuge in Singapore in September when a Seoul court issued an arrest warrant and requested Interpol to cancel his passport and issue a red notice against him. However, the Terraform Labs founder denied being on the run.

In December 2022, it was revealed that Do Kwon was actually hiding in Serbia. An official from the Korean investigative authorities confirmed the information, leading to Terra Classic (LUNC), the ecosystem’s cryptocurrency, experiencing a significant decline in performance.

In February, the SEC also charged Do Kwon for allegedly scamming $40 billion worth of cryptocurrencies in the market. An official from the National Police Agency said:

“We have confirmed the person’s age, nationality, and name with the ID card he had, and we have confirmed that he is the same person as Kwon based on photographic data. We are waiting for fingerprint information to confirm his exact identity.”