Do Kwon, the CEO of Terraform Labs, has officially been detained in Montenegro, however only hours later, US authorities in New York have charged him with fraud.
He has been accused with eight different crimes, such as commodities fraud, securities fraud, wire fraud, and conspiracy to commit fraud and market manipulation, according to a court document filed by United States Attorney Damian Williams.
According to the first complaint, Do Kwon is subject to prosecution because he allegedly made a number of false and deceptive claims in a TV interview. The four remaining allegations concern a number of allegedly false claims on the ability of the TerraClassicUSD stablecoin (USTC) to maintain its peg with the US dollar.
Do Kwon’s Arrest
The complaint was filed at the same time as Filip Adzic, Montenegro’s interior minister, reported on March 23 that a person thought to be the former “cryptocurrency king” was arrested at the Podgorica airport with “falsified documents.”
In particular, Do Kwon was stopped at the airport in Podgorica while attempting to board a flight to Dubai with his business partner Hon Chang Joon. The Montenegrin Interior Ministry later tweeted that Kwon had used counterfeit Costa Rican travel documents.
Reportedly, the Basic State Prosecution Service may soon bring criminal proceedings against Kwon and Joon for the use of fake travel passports from Costa Rica, which they claim were initially uncovered by Interpol, according to a March 23 news in the Montenegrin newspaper Pobjeda.
Do Kwon, who has a Red Notice issued against him by Interpol and is wanted for the highest level of arrest and prosecution, was reportedly hiding out in Serbia, as reported by TheCoinRise.
In the meantime, a lawsuit against Kwon was filed in Singapore in October by more than 350 investors who cumulatively lost more than $57 million as a result of Terraform Labs’ TerraUSD collapse.
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