Do Kwon, co-founder of Terraform Labs, has been detained in Montenegro for over 30 days after being caught with forged documents at the Podgorica airport while trying to travel to Dubai.

According to authorities, Kwon is suspected of being involved in the collapse of the Terra ecosystem in May 2022, which caused billions of dollars in losses for users.

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Kwon’s legal representative has confirmed that they will be appealing the court’s decision to extend his detention beyond the usual 72 hours for violating the law in Montenegro. The decision was made after authorities assessed that Kwon posed a high risk of fleeing.

The situation has escalated as US prosecutors in New York have also charged Kwon with fraud, as well as eight other charges including commodity fraud, securities fraud, wire fraud, conspiracy to commit fraud, and market manipulation.

Kwon’s arrest in Montenegro comes after suspicions that he was using fake documents to move between Singapore, Dubai, and Serbia, leading to investigations by Korean authorities. Kwon went on the run after the collapse of Terra’s ecosystem, which has affected tens of billions of dollars in the cryptocurrency market.

The news of Kwon’s arrest and the subsequent charges have caused shockwaves in the cryptocurrency community, as Terraform Labs is a major player in the industry. The situation has also raised questions about the effectiveness of regulations in the cryptocurrency market and the need for stronger measures to prevent fraud.

As the legal battle unfolds, it remains to be seen what the implications of Kwon’s arrest and charges will be for the wider cryptocurrency market and its stakeholders. Nevertheless, this latest development underscores the importance of adhering to strict regulatory frameworks and ethical practices in the cryptocurrency industry.

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This article was republished from azcoinnews.com

Terraform Labs CEO Do Kwon has been charged with eight separate counts, including securities fraud, commodities fraud, and wire fraud by United States prosecutors in New York, according to a March 24 report from Bloomberg.

This news comes just hours after Kwon was reportedly arrested in Montenegro with a companion while trying to fly to Dubai. According to the minister of interior of Montenegro, Kwon was detained at the Podgorica airport with “falsified documents.”

Kwon was charged with conspiracy to defraud and engage in market manipulation. The Southern District of New York claims jurisdiction over Kwon as he made a series of false and misleading statements during a TV interview that was transmitted to the Southern District of New York about the extent to which the Terra blockchain had been adopted by users. While the indictment was signed by United States Attorney Damian Williams, no date is mentioned.

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Kwon is just 32 years old and is a well-known entrepreneur in the cryptocurrency industry. He is the founder of Terraform Labs, a blockchain technology company that has developed several innovative projects in the decentralized finance sector. Kwon’s arrest and indictment have sent shockwaves through the cryptocurrency community, as he was once considered a rising star in the industry.

According to reports, Kwon and his companion Hon Chang Joon were trying to flee to Dubai before they were detained in Montenegro. The minister of interior of Montenegro stated that they are awaiting official confirmation of Kwon’s identity.

The charges against Kwon are serious and carry significant penalties if he is found guilty. Securities fraud, commodities fraud, and wire fraud are all federal crimes that can result in prison time and significant fines. The charges of conspiracy to defraud and engage in market manipulation are also serious, as they suggest that Kwon may have been involved in a larger scheme to deceive investors and manipulate the market.

The arrest and indictment of Do Kwon are just the latest in a series of high-profile cases involving fraud and other criminal activities in the cryptocurrency industry. As the industry continues to grow and attract more investors, regulators and law enforcement agencies are stepping up their efforts to combat fraud and other illegal activities. It remains to be seen how Kwon’s case will play out, but one thing is certain: the cryptocurrency industry is facing increased scrutiny, and those who engage in illegal activities will be held accountable.

#Dokown #Terra #LUNA #Montenegro #azcoinnews

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South Korean authorities have seized approximately 210 billion won ($160 million) worth of property linked to former Terra employees, mostly in the form of real estate, according to a report from South Korean news outlet KBS on April 3. The amount of compensation collected by the prosecution for the assets of Terraform Labs executives and employees charged with the virtual currency Terra and Luna incidents has now exceeded 200 billion won.

The Seoul Southern District Prosecutor’s Office’s financial and securities crime joint investigation team has collected and preserved 210 billion won in property, primarily in real estate, to recover undue gains from eight people, including Terraform Labs co-founder Shin Hyun-seong, the former CEO of Chai Corporation. The preservation of collection is a measure that prevents suspects from arbitrarily disposing of assets suspected of being criminal proceeds during the trial.

An official from the prosecution stated that they are still investigating the property ownership status of the suspects and plan to carry out collection preservation for the confirmed property in the future to recover the proceeds of crime and damages. In November 2022, the prosecution had seized former CEO Shin’s home in Seongsu-dong, Seongdong-gu, Seoul, and so far, collected and preserved about 100 billion won of former CEO Shin’s property.

Prosecutors are currently looking at the amount of undue gains Shin made while operating Terra and Luna at 154.1 billion won and will also track down hidden assets and freeze them. Former CEO Shin is known to have unfairly earned 140 billion won by purchasing Luna inexpensively before it was officially issued and selling it expensively, but the amount of unfair gains has increased by about 10 billion won.

In addition, the prosecution determined that the amount of unfair profits earned by the seven Terra employees, excluding former CEO Shin, amounted to KRW 169 billion, of which KRW 114 billion was collected and preserved. The prosecution also seized the houses and lands of Terraform Labs-affiliated CEO Kim Mo and former Terraform Labs executive A, considered the criminal proceeds of the two to be 79.1 billion won and 40.9 billion won, respectively, and is proceeding with collection and preservation measures.

Representative Shin and others are accused of designing the Terra business, holding virtual currencies issued before and after the business started, and making unfair profits by selling them when the price rises. The authorities are taking strong measures to recover the proceeds of crime and damages and to prevent the suspects from disposing of their assets before the trial.

#Terra #LUNA #Dokwon #crypto2023 #azcoinnews

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Terraform Labs CEO Do Kwon’s legal troubles continue to mount as he was recently arrested in Montenegro. According to reports, Kwon was apprehended by Montenegrin authorities along with another South Korean citizen, Hon Chang Joon.

The two were brought to the Basic State Prosecutor’s Office in Podgorica, Montenegro, on criminal charges for the criminal offense of document forgery under Article 412 paragraph 2 of the Criminal Code of Montenegro.

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It was also reported that Kwon and Joon used forged travel documents from Costa Rica when they attempted to board a flight to Dubai on March 23, 2023. Interpol checks established the falsity of the documents during passport control. Moreover, according to the inspection of the Border application, the persons have not registered their entry into Montenegro.

Kwon is also facing legal issues in his home state of South Korea where prosecutors have issued an arrest warrant against him. Kwon is facing a series of fraud charges and breaches of capital markets law. Furthermore, the South Korean foreign ministry has officially canceled Kwon’s passport on October 20, 2022, after he failed to surrender it following an October 6 order.

In addition to his legal woes in South Korea and Montenegro, the United States Securities Exchange Commission (SEC) has also filed fraud charges of their own against Kwon. The charges include securities fraud, commodities fraud, and wire fraud. The indictment against Kwon also includes charges of conspiracy to defraud and engage in market manipulation.

The SEC alleges that Kwon made a series of false and misleading statements about the extent to which the Terra blockchain had been adopted by users during a TV interview that was transmitted to, among other places, the Southern District of New York.

The global nature of Kwon’s legal troubles highlights the challenges of regulating the cryptocurrency industry. Kwon’s case underscores the need for stricter regulation and enforcement to prevent fraudulent activities in the emerging industry. It remains to be seen how Kwon’s legal battles will play out and what impact they will have on the cryptocurrency industry as a whole.

#Dokwon #Terra #LUNA #SEC #azcoinnews

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The recent arrest of Do-hyung Kwon, the CEO of Terraform Labs, in Montenegro has brought to light his previous denial of U.S. jurisdiction while on the run. According to a report by YNA, Kwon may have denied U.S. jurisdiction out of consideration to reduce the severity of his future punishment.

Kwon was a key figure in the ‘Terra/Luna’ incident that caused a domino effect of the collapse of the value of cryptocurrency around the world. He delayed the deadline for submitting an appeal request to the effect of disobeying the summons order of the US Securities and Exchange Commission (SEC) on August 18 last year to October 6 by 30 days, requested the U.S. Supreme Court.

It has been about a year since the SEC first delivered a subpoena to Kwon in person in New York, USA in September 2021 regarding Terraform Labs’ ‘Mirror Protocol’ app. In April of last year, a month before the Terra and Luna crash, Kwon left Korea and fled. It’s been 4 months since he started living as a fugitive.

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In the documents submitted to the Supreme Court, Kwon’s attorney protested that the SEC’s personal jurisdiction was recognized by the 2nd Court of Appeal, even though Terraform is a Singapore corporation, and Kwon is a resident of Singapore. Kwon’s side insisted that the judgment of the court’s personal jurisdiction is broad and important, considering the digital market as well as the general context.

In the United States, it is possible to sentence more than 100 years in prison by adopting the judicial principle of adding up sentences for each individual crime. Meanwhile, in Korea, the maximum sentence for economic offenses is only about 40 years, and there are no standards and laws to determine whether cryptocurrency is securities or not.

Observers suggest that Kwon’s denial of U.S. jurisdiction could have been an attempt to secure the time needed to escape, while also lowering the severity of punishment in the future. However, Kwon is currently detained in Montenegro on suspicion of forged passports and is facing trial. His legal representative has refused to answer whether he wants to be extradited to South Korea or the United States, saying “no comment.”

The case of Kwon and Terraform Labs has sparked interest and raised questions regarding the jurisdiction of cryptocurrencies and economic offenses in different countries. As the case continues to unfold, it will be interesting to see how it will impact future regulations and legal processes related to cryptocurrencies.

As AZCoin News reported, Do Kwon was apprehended while trying to board a flight to Dubai using counterfeit Costa Rican passports. In addition, a false Belgian passport was discovered in his possessions. Interpol conducted an inquiry and found that passport forgery is a grave crime punishable by up to five years in prison in Montenegro.

#Dokwon #Terra #LUNA #crypto2023 #azcoinnews

This article was republished from azcoinnews.com