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.
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.
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This article was republished from azcoinnews.com
