- Do Kwon is charged with commodities fraud, wire fraud, securities fraud, conspiracy to defraud
- He had forged documents on him at Podgorica airport, was trying to fly to Dubai
Do Kwon, the infamous CEO of Terraform Labs behind failed cryptocurrency LUNA and stablecoin TerraUSD, was arrested in Montenegro, the minister of interior of the Eastern European country tweeted on March 23. A few hours later, he was charged with fraud by US prosecutors in New York.
Eight counts of fraud in the US
Do Kwon has been charged with commodities fraud, wire fraud, securities fraud, and conspiracy to defraud and engage in market manipulation along with four other crimes, according to a US court filing.
Allegedly, Kwon made misleading and false statements during a program that aired in the Southern District of New York. They involved the extent, to which users had adopted the Terra blockchain. This is why the Southern District and the US in whole has jurisdiction over Kwon on the count of conspiracy to defraud.
In May 2022, the US Securities Exchange Commission filed fraud charges for his purported role in the collapse of Terra Luna Classic (LUNC) and TerraClassicUSD (USTC).
Kwon nabbed en route to Dubai
Montenegro interior minister Filip Adzic reported that the dethroned king of crypto had been arrested with forged documents at Podgorica airport. He was trying to fly to Dubai with business partner Hon Chang Joon.
According to local authorities, Kwon and Joon are facing criminal charges for using falsified travel documents issued in Costa Rica. The maximum prison term for this crime is three years.
He also faces fraud charges in South Korea
Kwon was charged with breaching capital markets legislation and fraud in his homeland as well. South Korea issued an arrest warrant against him on September 14, 2022, CoinTelegraph reminds. About two weeks later, Interpol issued a red notice listing.
Kwon has been moving between Dubai, Singapore, and Serbia since his empire collapsed. South Korea ordered him to give up his passport on October 6, which he didn’t, and proceeded to cancel it on October 20.
