• Do Kwon, the founder of Terraform Labs and creator of LUNA and UST, has been arrested at Podgorica airport with fake documents.
• He is wanted by authorities in South Korea, Singapore, and the USA for securities law violations and the loss of 40 billion market value due to de-pegging algo-stablecoin.
• His whereabouts have been unknown since September 2022, when he was believed to be in Singapore.
Do Kwon Arrested at Podgorica Airport
Montenegro authorities have confirmed that they arrested a man suspected to be Do Kwon – the founder of Terraform Labs – at the Podgorica airport with fake documents. The confirmation was made after verifying his age, photo, nationality, and name via ID cards. South Korean authorities are now waiting for verification of fingerprint information before taking any legal action against him.
Do Kwon Wanted by Multiple Jurisdictions
Do Kwon is wanted by authorities in South Korea, Singapore and the USA for various fraud cases related to his project Terraform Labs. Specifically, he is accused of offering securities without registration which resulted in a loss of 40 billion market value after de-pegging algo-stablecoin caused a death spiral in LUNA’s price. Authorities have been searching for him ever since September 2022 when he was believed to have left Singapore.
Interpol Red Notice Issued
In response to reports of him being on the run from multiple jurisdictions, Interpol issued a red notice as per request from South Korean authorities. However, Do Kwon has denied fleeing law enforcement stating that he has nothing to hide and is cooperating with all government agencies that have shown interest in communicating with him regarding this case.
LUNA Price Tumbles
The news of Do Kwon’s potential arrest has had an impact on LUNA’s price as it tumbled on CoinMarketCap following reports about his capture at Podgorica airport with fake documents. This could potentially mean further losses for investors who were already affected by LUNA’s crash earlier this year due to dea-pegging algo-stablecoin causing a death spiral in its price when it happened back in September 2022.
Though details are still emerging surrounding Do Kwon’s arrest at Podgorica airport with fake documents; if confirmed true then this could lead to further legal action against him from multiple jurisdictions including South Korea and the USA who both have pending charges against him related to fraud and securities law violations respectively leading up to LUNA’s death spiral earlier this year due to dea-pegging algo-stablecoin causing its price to plunge significantly back then in September 2022