Terraform Labs’ Do Kwon Indicted For Fraud After Montenegro Arrest

  • Kwon was arrested in Montenegro and confirmed to be him by South Korean police.
  • South Korean authorities aim to repatriate Kwon after his arrest with counterfeit documents.

According to U.S. prosecutors, Do Kwon, the cryptocurrency innovator responsible for two digital currencies that reportedly lost over $40 billion in value last year, has been indicted on fraud charges.

After his arrest earlier on Thursday in Montenegro, an eight-count indictment against Kwon was unveiled in the U.S. District Court in Manhattan. However, Kwon’s attorneys in the U.S. have yet to comment on the matter.

The indictment issued on Thursday brings charges against Kwon who is a South Korean citizen and co-established Terraform Labs and created the TerraUSD and Luna cryptocurrencies. Kwon is accused of two counts of securities fraud, wire fraud, commodities fraud, and conspiracy.

This criminal case comes after the U.S. Securities and Exchange Commission filed civil charges against Kwon and Terraform Labs last month. Kwon had been a fugitive for several months, and in September of last year, South Korean authorities issued an arrest warrant for him.

On Friday, South Korean police confirmed that the person arrested in Montenegro was indeed Kwon, as his fingerprints matched the data held by the country’s National Police Agency (KNPA). A KNPA official further added,

This has been shared with the Seoul Southern District Prosecutors’ Office and Interpol in Montenegro.

According to the ministry, police discovered forged passports from Costa Rica and Belgium during the incident. Interior Minister Filip Adzic confirmed on Twitter that the person apprehended was suspected to be Do Kwon, one of the most wanted fugitives, co-founder, and CEO of Terraform Labs, based in Singapore. Adzic also stated that Kwon, who has been linked to losses of over $40 billion, was detained at the Podgorica airport with counterfeit documents.

Meanwhile, a spokesperson for the country’s prosecution service has stated that they will work alongside other institutions to promptly repatriate Kwon. Montenegro’s interior ministry announced that police had arrested a person believed to be Kwon and another suspect, who was attempting to board a flight to Dubai at Podgorica airport.

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