US charges fugitive cryptocurrency Do Kwon after Montenegro arrest
The US District Court in Manhattan filed an eight count fraud indictment against Do Kwon on Thursday following news of his arrest on an Interpol warrant in Montenegro.
The indictment charges Kwon, a South Korean national who co-founded Terraform Labs and developed cryptocurrencies TerraUSD and Luna, with two counts of securities fraud, wire fraud, commodity fraud and conspiracy.
Terra and Luna were two paired cryptocurrencies whose value rose rapidly in 2021 and early 2022, only to collapse in May 2022, wiping out at least $40 billion (about €37 billion) in market capitalization.
The criminal prosecution follows civil charges already filed against Kwon and Terraform.
Fingerprints of man arrested in Montenegro match
Montenegrin authorities said on Thursday they had arrested a man they believed to be Kwon.
He was arrested along with a second suspect trying to board a flight to Dubai at Podgorica Airport. Police found forged Costa Rican and Belgian passports during the encounter.
“The person is suspected of being one of the most wanted fugitives, South Korean Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,” Interior Minister Filip Adzic wrote on Twitter.
On Friday, South Korean police said the individuals’ identities had been confirmed, including by fingerprint matching.
“This has been shared with the Seoul Southern District Public Prosecutor’s Office and Interpol in Montenegro,” said an official at the Korean National Police Agency.
Source: DW
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