Terra’s Do Kwon Founder Arrested at Montenegro Airport


Wanted for violating virtual currency regulations

The interior minister of the Balkan country Montenegro announced on the 23rd that it has detained a person believed to be Do Kwon, co-founder of Terraform Labs, which led the development of the crypto asset Terra.

According to Korean media reports, the authorities confirmed that the detained person was Mr. Kwon based on the name and nationality on the identification card. We will be checking fingerprints as well.

In September 2022, it was reported that the South Korean investigative authorities issued an arrest warrant for Mr. Kwon, who is of South Korean nationality. The Terra riot, which was a major factor in the “cryptocurrency winter,” began in May last year, so if his identity is confirmed, he will be arrested about a year later.

connection: Terra USD (UST) dipeg turmoil Summary of response from Terraform Labs and exchanges

At that time, the South Korean authorities also issued arrest warrants for five people, including Kwon, co-founder Nicholas Platias, and employee Han Mo, all of whom were accused of violating the Capital Market Act. was under suspicion. In Montenegro this time, Mr. Mo, who was with Mr. Kwon, was also detained.

connection: South Korean authorities issue arrest warrants to Terra’s Do Kwon founders

Kwon was initially detained at the airport for “falsification of documents,” according to Montenegro’s interior minister.

To international wanted

After issuing an arrest warrant, South Korean investigators began the process of placing Kwon on the International Wanted List of the International Criminal Police Organization (INTERPOL). He also asked the South Korean Ministry of Foreign Affairs to revoke his passport.

connection: South Korean investigative authorities begin filing for Do Kwon’s international wanted list

In February, the US Securities and Exchange Commission (SEC) sued Terraform Labs and Kwon for conducting securities fraud. It also points out that it offered and sold cryptocurrencies that were considered unregistered securities.

connectionSEC sues former Terra founder Do Kwon for securities fraud

In the Terra riot, the price of the algorithmic US dollar stablecoin UST, which should be stable, deviated significantly from the US dollar. Investors have been hit hard, and global regulatory scrutiny of stablecoins and cryptocurrencies has intensified.

connection: Financial Services Agency tightens regulations on algorithmic stablecoins

What is a stablecoin

A cryptocurrency whose price is always stable. Various stablecoins have been developed whose value is backed by legal currency or virtual currency, or whose price is stabilized by algorithms.

▶Cryptocurrency Glossary

connection: What is a stablecoin that even beginners can understand | Explain features and use cases

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