Crypto fugitive Do Kwon reportedly arrested in Montenegro

[NelsonG]

Do Kwon, the former CEO and co-founder of cryptocurrency company Terraform Labs, has reportedly been captured by authorities in Montenegro after months of being on the run.

The news broke following a statement posted by the Interior Minister of Montenegro, Filip Adzic, to his Twitter account.

"ONE OF THE WORLD'S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA," tweeted Adzic in all caps on Thursday. "Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs."

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"The former 'cryptocurrency king,' who is behind losses of more than 40 billion dollars, was detained at the Podgorica airport with falsified documents, and the same is claimed by South Korea, the USA and Singapore," he continued. "We are waiting for official confirmation of identity."

Things all came crumbling down for Do Kwon back in May of last year after the cryptocurrencies his company had created – stablecoin Terra and its sister token Luna – failed. At the time, Terra was one of the biggest stablecoins within the cryptocurrency ecosystem. Its failure created a domino effect which tanked the entire crypto market. Do Kwon attempted to resuscitate his failing crypto empire, but that turned out to be unsuccessful.

Subsequent investigations into Do Kwon and his operation eventually resulted in South Korean prosecutors charging Do Kwon and other associates with violating capital markets laws. A warrant was issued for his arrest in September, however, the cryptocurrency CEO could not be located. Later that month, Interpol issued a "red notice," officially categorizing Do Kwon as an international fugitive, wanted by law enforcement around the globe.

Communicating through social media, Do Kwon insisted he was not on the run even though South Korean prosecutors claimed he was. It was reported at the time that Do Kwon was allegedly hiding out in Serbia, a country that does not have an extradition treaty with South Korea.

In addition to the charges from South Korean prosecutors, the U.S. Securities and Exchange Commission (SEC) also charged Do Kwon last month, alleging that he had defrauded investors with crypto schemes.

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[summersbie]

The rise and fall of Terraform Labs should serve as a cautionary tale for all of us. In a market where things can change at the drop of a hat, due diligence and transparency are more crucial than ever.