Finally Luna coin creator arrested
Montenegrin police successfully detained Terraform Labs co-founder Do Kwon.
Do Kwon is an infamous crypto entrepreneur. Kwon founded a blockchain engineers team Terraform labs. Terraform launched the Terra blockchain with Luna coin & TerraUSD stablecoin, as the top successful crypto project. In May 2022, both the tokens collapsed badly citing high volatility in the crypto sector TerraUSD & Luna were integrated via a problem to maintain the value of each TerraUSD stablecoin equal to $1.
On 23 March 2023, The Montenegrin Minister of Interior Filip Adzic confirmed that Montenegrin police detained Kwon in the Podgorica airport carrying falsified documents.
As a reminder, Kwon’s passport was already revoked by the South Korean government because he was on the run for a long time, while he claimed many times that he was not on the run.
Initially when an arrest warrant was issued by South Korean enforcement agencies then Kwon left Korea and shifted to Singapore anonymously. As we know that Singapore is the headquarters of Terraform labs, so also he was not safe under the jurisdiction of Singapore.
In December 2022, many reports claimed that Kwon left Singapore for hiding in Serbia, on behalf of the Korean investigations.
US SEC vs Terraform labs
In late Feb 2023, the United States Securities and Exchange Commission (SEC) initiated fraud charges against Terraform labs & its co-founder Kwon over big crypto fraud.
The SEC body alleged that Terraform & its leaders secured huge profits from their crypto project before the meltdown of the whole Terra ecosystem.
An investigation by the SEC agency also alleged that Terraform was misleading Luna & TerraUSD investors and claimed that there was no kind of protocol between TerraUSD & Luna, instead a third-party company was controlling the price of both the coins, for discounted luna coin from the Terraform labs.
Read also: Tether CTO says Bitcoin is the ultimate way to hold your wealth
