The crypto community on Twitter is buzzing with rumors that the focal point of the LUNA-UST crash, Do Kwon, has been arrested. On March 23, while the crypto community was scrambling to claim the Arbitrum airdrop, another noteworthy piece of information surfaced, that Terraform Labs CEO Do Kwon had been arrested.
Specifically, the Twitter account of the Minister of Interior of Montenegro stated that the government had arrested Do Kwon for using fake documents at Podgorica airport. However, Montenegro is still waiting to verify the specific identity. If true, this would be a new turning point in the long story of one of the most serious crashes in the cryptocurrency market.
U PODGORICI UHAPŠEN JEDAN OD NAJTRAŽENIJIH SVJETSKIH BJEGUNACA
Crnogrska policija lišila je slobode lice za koje se sumnja da je jedan od najtraženijih bjegunaca, južnokorejski državljanin Do Kwon, suosnivač i izvršni direktor Terraform Labs sa sjedištem u Singapuru.
1/2— Filip Adzic (@filip_adzic) March 23, 2023
In May 2022, the cryptocurrency LUNA and the stablecoin UST evaporated $60 billion in market capitalization in just a few days, causing the entire crypto industry to experience a strong dump. Do Kwon, as CEO of Terraform Labs, the company behind LUNA and UST, was seen by the crypto community as the person responsible. However, he repeatedly evaded summonses from the South Korean government, fled Singapore, and was believed to be hiding in Serbia, a country bordering Montenegro.
The South Korean government then issued an arrest warrant and canceled Do Kwon’s passport, forcing him to possibly use fake documents to leave the country, leading to his arrest by Montenegrin authorities.
In February, the US Securities and Exchange Commission (SEC) filed charges against Do Kwon, and also declared LUNA-UST to be securities.
This latest development will undoubtedly have significant implications for the cryptocurrency industry as a whole, and it remains to be seen what the specific consequences will be for Terraform Labs and LUNA-UST. For now, the crypto community will have to wait and see how this story unfolds.
Read more:
- A Year Ago Today: Do Kwon Places A $1 Million Bet On Luna’s Price Exceeding $88
- FBI And Southern District Of New York Investigate TerraUSD Stablecoin Collapse, Question Terraform Labs Team Members