- Do Kwon, the crypto executive behind the collapse of Terra USD and Luna token, has been apprehended in Montenegro.
- Kwon had allegedly been a fugitive these past few months and was found to be holding phony passports and documentation.
- The collapse of Terra USD cost crypto investors billions in hard-earned investment funds.
Do Kwon Arrested in Montenegro
Do Kwon – the crypto executive behind the Terra USD collapse that occurred in the summer of 2022 – has been arrested and taken into custody. The South Korean citizen was detained at Podgorica airport with falsified documents. Do Kwon is co-founder and CEO of Singapore-based Terraform Labs, which created both assets, resulting in losses of more than 40 billion dollars for investors.
Kwon Had Been on the Run
Kwon had allegedly been a fugitive for several months before his arrest. In late 2022, South Korea issued an arrest warrant for him citing him as person of interest behind the collapse. He stated he was willing to cooperate with authorities and that he was not running from law however he went silent on social media by February 1st this year. According to Montenegro authorities, Kwon had allegedly been trying to travel to Dubai using a phony Costa Rican passport when he was apprehended.
Terra USD Is an Algorithmic Stable Coin
Terra USD had been classified as a stable coin so it came as shock when asset lost its peg and went under fully. Many traders likely didn’t understand that it was merely an “algorithmic” stable coin meaning it wasn’t tied to any serious collateral or fiat currencies but instead its value only stayed consistent when people chose to believe in it.
South Korean Agencies Confirm Fingerprints Match Those Of Kwon’s
South Korean law enforcement agencies have confirmed that fingerprints match those of Kwon’s, suggesting they now have their man. It remains unclear what will happen next however extradition is being requested from South Korea, USA, and Singapore governments who are looking into case further .