Cryptocurrency Fugitive Do Kwon Arrested in Montenegro, the Man Behind the $40 Billion Dollar Terra Blockchain & $USTC’s Collapse!

Do Kwon, a renowned crypto founder who had previously launched two digital currencies that suffered a major setback last year, has been indicted for fraud by U.S. prosecutors following his recent arrest in Montenegro. The arrest was confirmed by local government officials on Friday 3/24/2023. He was detained at the airport in the capital city of Podgorica, where he had been attempting to board a flight to Dubai. According to reports, local police apprehended Kwon and Terraform's CFO, Han Chang Joon, on the grounds of carrying counterfeit Costa Rican and Belgian passports. The US Justice Department's involvement in the arrest remains unclear. However, US federal prosecutors recently filed eight charges against Kwon, including fraud and market manipulation, related to the dramatic crash of the TerraUSD stablecoin $USTC, and its interconnected sister cryptocurrency, Luna, in the previous year. This brought a chase of Do Kwon running from authorities to a close a protracted manhunt for the Crypto entrepreneur, who was once widely respected but lost the trust of numerous investors in the aftermath of last year's cryptocurrency market collapse. He stole billions of dollars from his investors. According to authorities, Kwon, a South Korean developer responsible for the TerraUSD and Luna cryptocurrencies, had reportedly gone into hiding after his home country issued an arrest warrant for him in September. Despite initially refuting the claim in a tweet, Kwon's once-active Twitter account has since gone inactive, raising even futher suspicion among his followers and investors alike.

On Thursday, Montenegro's Interior Ministry confirmed that Do Kwon, together with a fellow South Korean citizen, was detained and taken to a prosecutor's office in the capital city on 8 different charges of indictment. It was reported that South Korea had requested Interpol to issue a "red notice," which allows provisional arrest of individuals in other countries, to capture Kwon. Later that day, the Southern District of New York unveiled an eight-count indictment against Kwon, related to his cryptocurrency business. The indictment alleged Kwon's involvement in various forms of fraud, including securities and commodities fraud, as well as conspiracy to defraud and engage in market manipulation. The timing of Kwon's arrest is notable, given the current state of the cryptocurrency market, which has experienced significant turmoil since Luna's crash last spring, further exacerbated by the collapse of other crypto firms. The recent demise of FTX, a major crypto exchange, and the subsequent fraud charges against its founder, Sam Bankman-Fried, have also contributed to the cryptocurrency market's ongoing "crypto winter." Is this why we are seeing the current market be so bearish and fluctuate so much. The trust in the Blockchain Industry is down since the fall of MAJOR platforms link Celcius, Luna, and FTX.

There was no further information about Mark Califano, a US attorney who represents Kwon, at the time of this report. The federal prosecutors have indicated their intention to extradite Kwon to face charges, according to Bloomberg. Technically, Montenegro does not have extradition treaties with the US or South Korea but are working with US officials. Kwon has been wanted for arrest in South Korea since September 2022. Last month, the Securities and Exchange Commission filed civil charges against Kwon and Terraform Labs, accusing him of orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities. Kwon had promoted TerraUSD, which was pegged to the US dollar, as a stable option to more volatile cryptocurrencies. However, both TerraUSD and Luna plummeted in value last May after investors lost faith in them. The collapse resulted in a cryptocurrency bloodbath that wiped out $40 billion or more in market value within days. The reasons behind the collapse are still not clear. Kwon's arrest follows a series of high-profile incidents that have harmed public investors, prompting US authorities to crack down on alleged bad actors in the crypto sector.
Regulatory pressure has mounted against various firms and crypto proponents since the Cryptocurrency market collapse, including Crypto Exchange Kraken in February, where they were forced into a $30 million settlement with the Securities and Exchange Commission (SEC). Celebrities have been getting charged and indicted, and now are they agreeing to cease selling certain assets. The day before Kwon's arrest, the SEC lodged a complaint against eight celebrities, among them professional boxer Jake Paul and actress Lindsay Lohan, accusing them of violating disclosure requirements in connection with their promotion of cryptocurrencies. Both Terra and Luna enjoyed significant popularity among the cryptocurrency community, appreciating in value considerably before eventually experiencing a catastrophic decline last year from both owners using investor's funds in the wrong manner or just flat out stealing the funds entirely! Investors have accused Kwon of lying to them with regard to the tokens' promotion and that he stole user's funds. Prior to the collapse, Kwon was widely respected and had a devoted fan base who referred to themselves as "Lunatics" after his token. Kwon, who studied at Stanford University and briefly worked for Apple, subsequently founded several Crypto ventures, including Luna. Kwon's case has garnered significant attention, as governments around the world grapple with how best to prosecute cryptocurrency-related cases and pursue the entrepreneurs responsible for developing these coins. Among these figures is Bankman-Fried, the founder of FTX, who is currently under house arrest and faces numerous civil and criminal charges brought against him by various government agencies.

Blockchain News World is a brand new platform being created by Veteran Blockchain Writers, Developers, Investors, and Marketers. Blockchain News World will be launching a layer one blockchain once our community has grown and we reach a certain amount of followers. All of our news articles are written in house by our top Cryptocurrency and Blockchain experts. None of our articles are written to "promote any type of project". We are here to bring you REAL news in the Blockchain Industry. Find our community on Telegram at https://t.me/blockchainnewsworld Our Twitter is at https://twitter.com/BlockNewsWorld and our Website is being built and launched at https://www.blockchainnewsworld.com/ Blockchain News World's future plans are to build out a full layer one blockchain ecosystem focused on freedom of speech dAPPS and platforms that compensate content creators, developers, marketers, Telegram admins, and other Blockchain jobs. This will be built out later down the road after our community and online presence has grown! Early adopters before we launch will be compensated accordingly.

Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute investment advice, financial advice, trading advice, or any other sort of advice. You should conduct your own research and consult with a professional before making any investment decisions. We are not responsible for any investment decisions you make based on the information provided in this article. Investing in any cryptocurrency or token involves risk, and you should only invest money that you are willing to lose. Please contact your local financial advisor before making any type of decision.