Terraform Labs' Do Kwon Indicted for Fraud After Arrest

Arrest and Charges of Do Kwon

Do Kwon, the founder of Terraform Labs, has been indicted on multiple fraud charges following his arrest in Montenegro. Kwon, a South Korean citizen, is alleged to have caused over $40 billion in losses related to his involvement in two digital currencies, TerraUSD and Luna.

Legal Proceedings and Extradition

The indictment, revealed in the U.S. District Court in Manhattan, includes charges of securities fraud, wire fraud, commodities fraud, and conspiracy. This legal action surfaces after the U.S. Securities and Exchange Commission previously filed civil charges against Kwon and his company. Efforts are underway for his extradition to South Korea, where authorities had issued an arrest warrant. His arrest in Montenegro was confirmed through fingerprint verification by South Korean police.

The Arrest in Montenegro

Kwon's apprehension occurred at Podgorica airport in Montenegro, where he was found with counterfeit documents. He was detained while allegedly attempting to board a flight to Dubai. Montenegro's Interior Minister confirmed the arrest, identifying Kwon as one of the most wanted fugitives.

International Cooperation and Next Steps

Montenegro's authorities, alongside international agencies, are coordinating to ensure Kwon's swift repatriation. The discovery of forged passports from Costa Rica and Belgium during his arrest underscores the complexity of the case. As proceedings continue, the focus remains on addressing the significant financial impact of his alleged actions.