Terraform Labs CEO Do Kwon has been charged with fraud by United States prosecutors in New York, just hours after he was reportedly arrested in Montenegro.
In a court filing signed by United States Attorney Damian Williams, the 31-year-old businessman has been charged with eight separate charges, including commodity fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.
In the first charge, conspiracy to defraud, US prosecutors claim to have jurisdiction over Kwon because he made several false and misleading statements during a TV interview sent to – among other places – the Southern District of New York, about the extent to which the Terra blockchain has been adopted by the user.
means:
One of the most wanted fugitives in the world was arrested in PODGORICA
Montenegrin police have detained a suspect who is one of their most wanted fugitives, South Korean citizen Do Kwon, founder and CEO of Singapore-based Terraform Labs.
— vedbajoria (@VedBajoria) March 23, 2023
The submission was Filip Adzic, the minister of the interior of Montenegro, reported on March 23 that a man suspected of being a former “cryptocurrency king” was detained at Podgorica airport with “false documents.”
The suspect, believed to be Kwon, was detained at Podgorica Airport with another business associate Hon Chang Joon as he tried to fly to Dubai, Adzic said.
In a follow-up tweet, the Montenegrin Ministry of Interior reported that Kwon used fake travel documents from Costa Rica.
Related: Terra founder Do Kwon says he didn’t ‘run away’
South Korean prosecutors issued an arrest warrant for Kwon on September 14, who faces multiple charges of fraud and violating capital market laws in his home country. Interpol has also issued a red notice list for arrests on September 26 and the United States Securities and Exchange Commission (SEC) has also filed its own fraud charges on February 16.
The charges brought against him are related to his alleged role in the collapse of the $40 billion Terra Luna Classic (LUNC) token and TerraClassicUSD (USTC) stablecoin last May.
Since the collapse, Kwon has reportedly moved between Singapore, Dubai and Serbia.
South Korea’s foreign ministry officially revoked Kwon’s passport on October 20, after he failed to surrender his passport following an October 6 order.
Magazine: SEC sues Do Kwon, Paxos ready for court, SBF’s VPN: Hodler’s Digest, February 12-18