The former blockchain executive is wanted by Interpol for his role in the $40 billion collapse of the Terra Luna ecosystem during May 2022.
According to information from Filip Adzic, the Minister of the Interior of Montenegro, the suspected creator of Terra Luna, Do Kwon, was arrested in the Balkan region on March 23. Since the initial announcement, local media outlet Vijesti has confirmed that the Twitter account that made the announcement came from the Ministry of the Interior of Montenegro and that the person arrested was a South Korean national.
On the same day, South Korean news agency Yonhap said authorities had confirmed, based on “photo data”, as well as the name, country and age of the identity card, that the detainee was the same person. CEO of Terraform Labs, Do Kwon. Former blockchain CEO Han Mo was also reportedly arrested in Podgorica. However, South Korea’s national police agency said it was still waiting for “fingerprint information” from Montenegrin authorities to confirm that the detainees were indeed Do Kwon and Han Mo. South Korean prosecutors revoked Kwon’s passport on Oct. 2022.
According to Adzic, the person who is believed to be the first “cryptocurrency king” was arrested at Podgorica airport with “false documents” and the authorities are waiting for official confirmation of his identity. Montenegro is located in the southern part of Serbia and borders the country. Since Dec. 2022, South Korean prosecutors alleged that Kwon was hiding in Serbia, where there is no extradition treaty with South Korea. On Sept. 26, 2022, an Interpol Red Notice was issued for Kwon’s arrest for his alleged involvement in the collapse of Terra Luna Environment (LUC) $40 billion and Terra USD (USTC) in May 2022. The regulatory authorities are also seeking him in South Korea, Singapore and the United States
Montenegro will not have an extradition treaty with Singapore or South Korea. However, he has an old extradition treaty with the United States and has complied with requests to remove US citizens in the past. The country also liaises with Interpol on criminal matters. Do Kwon has spent a lot of time in the United States in the past, but it is not known if he is a US citizen or permanent resident, or if he has committed crimes against US citizens, for trial crime is possible.
On Feb. 16, 2023, the US Securities and Exchange Commission accused Kwon of “organizing multibillion-dollar crypto-asset fraud involving algorithmic stablecoins and other crypto-assets”. Since March, the United States Department of Justice has been investigating Kwon’s role in the collapse of the Terra Luna ecosystem. However, no criminal charges have been filed against Kwon in the United States.
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