#DoKwon #LUNA #LUNC #arrested #Terra
Do Kwon, the co-founder of the failed cryptocurrencies Terra USD (UST) and Luna (LUNA), has been arrested in Montenegro for attempting to enter the country with fake documents, according to the Minister of Foreign Affairs of Montenegro, Filip Adzic. Kwon has been on Interpol's red notice since September 2022 and is being sought by South Korea and the United States.
Kwon was allegedly involved in a multi-million-dollar cryptocurrency fraud and is accused of violating South Korea's Market Law, as well as organizing a Ponzi scheme to launder money and evade taxes. The US Securities and Exchange Commission (SEC) also filed a lawsuit against Kwon for his alleged involvement in the cryptocurrency fraud.
Kwon was the mastermind behind the algorithmic stablecoin terraUSD, which lost its parity with the US dollar, causing its twin currency, Luna, to lose much of its capitalization and collapse to zero dollars. This triggered an unprecedented crisis for investors, even affecting the cryptocurrency market.
The last known appearance of Kwon was in August 2022, during an interview in which he denied making any profit from the cryptocurrency's bankruptcy. "That's probably the silliest way to try to make a personal gain," he said at the time.
Kwon's arrest is a significant development in the investigation of the cryptocurrency fraud, and it remains to be seen what will happen to him next. However, it is a reminder that financial fraud is not exclusive to traditional finance, and investors should exercise caution when investing in cryptocurrencies.
