Reports have emerged that Do Kwon, the founder of Terraform Labs, has been arrested in Montenegro on charges of using falsified documents, according to Filip Adzic, the minister of interior of Montenegro, and reported first by TechCrunch on Thursday, March 23.
"ONE OF THE WORLD'S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA. 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," Adzic said in a tweet.
The Bitcoin logo is seen on a Coinstar cryptocurrency ATM at a grocery store in Washington, DC, on January 19, 2023.
Terra/LUNA Collapse
The authorities in Montenegro have yet to issue an official statement to confirm or deny the arrest. Kwon, who has been under investigation for 11 months since the Terra/LUNA collapse, which took out around $40 billion from the cryptocurrency market, has consistently maintained his innocence.
Despite his claims that he is not hiding from authorities, prosecutors have refuted these assertions.
The news of Kwon's arrest has sent shockwaves throughout the cryptocurrency world. It is unclear what impact, if any, this will have on Terraform Labs' operations, which recently attracted the attention of the US Securities and Exchange Commission (SEC) over allegations of defrauding US investors who purchased its crypto assets, LUNA and Terra.
In the past, Kwon has claimed that the accusations made against him by the South Korean prosecutors are unfounded and politically motivated.
He also argued that each independent country was free to decide how to interpret the red notice that he received from Interpol.
Kwon's defense team has been working nonstop to establish his innocence, and he has consistently insisted that he is eager to engage with any government organization that has an interest in getting in touch with him.
Kwon's whereabouts, however, has remained a mystery since late September, prompting Interpol to issue a red notice demanding that law enforcement authorities around the world look for and arrest him.
"I am not 'on the run' or anything similar - for any government agency that has shown interest to communicate, we are in full cooperation and we don't have anything to hide," Kwon tweeted in September.
Shortly after, Kwon received a request from the South Korean authorities to turn in his passport or face having it canceled.
Read Also: Terra 2.0: Luna Cryptocurrency Is Back After $40 Billion Collapse - Is it Faring Better this Time?
Do Kwon's Case
The authorities in Montenegro have not commented on the case or provided any further details on the charges against Kwon.
The case has raised many questions about the role of cryptocurrencies in the global economy and the need for greater regulation.
Many governments around the world have been grappling with how to regulate cryptocurrencies and the need to protect consumers from fraud and other illegal activities.
The reported arrest of Kwon is a significant development in the ongoing saga involving Terraform Labs and its founder. The case is ongoing, and it remains to be seen what the future holds for Kwon and Terraform Labs.
Related Article: Terra's Stablecoins' Crash: Is Cryptocurrency Dead After the Massive Meltdown?
