Blockchain & Crypto

Crypto Fugitive Do Kwon Faces US Charges After Arrest in Montenegro

The US authorities have charged the founder of the bankrupt cryptocurrencies terraUSD and Luna Do Kwon with involvement in the commission of fraudulent actions.

Crypto Fugitive Do Kwon Faces US Charges After Arrest in Montenegro

Source: Pixabay.com

These charges were filed after the arrest of Do Kwon in Montenegro. Interpol officers arrested the accused on March 23 at Podgorica airport. Do Kwon tried to board a flight to Dubai by presenting fake documents from Costa Rica.

The founder of the bankrupt cryptocurrencies was put on the wanted list by law enforcement agencies in the United States and South Korea. He is charged with fraud, the purpose of which was to deceive investors. In the United States, Do Kwon was charged with eight crimes. Law enforcement officers claim the involvement of the accused in securities fraud, conspiracy, and fraud with goods and wires.

The U.S. Securities and Exchange Commission (SEC) states that in the period from April 2018 to 2022, Do Kwon made false offers to investors about interconnected assets, most of which were not registered. The victims were sure that they were channeling their funds into securities with digital assets, including algorithmic stablecoin.

Montenegro’s Interior Minister Filip Ajic announced Do Kwon’s arrest on social media. He also stated that the accused is responsible for losses amounting to more than $ 40 billion.

In 2022, the South Korean authorities reported that Do Kwon was hiding in Serbia, where he came from Singapore, where Terraform Labs was based.

In May 2022, there was a sharp drop in the value of TerraUSD and Luna. Because of this, chaos began in the cryptocurrency market, which resulted in losses exceeding $ 40 billion. Then it was expected that the cost of a stablecoin would be equal to $ 1.

Do Kwon’s flight to evade responsibility was the beginning of a large-scale decline in the crypto industry, which worsened after the collapse of FTX.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.