Do Kwon, co-founder of Terraform Labs, has been detained in Montenegro for over 30 days after being caught with forged documents at the Podgorica airport while trying to travel to Dubai.
According to authorities, Kwon is suspected of being involved in the collapse of the Terra ecosystem in May 2022, which caused billions of dollars in losses for users.
Kwon’s legal representative has confirmed that they will be appealing the court’s decision to extend his detention beyond the usual 72 hours for violating the law in Montenegro. The decision was made after authorities assessed that Kwon posed a high risk of fleeing.
The situation has escalated as US prosecutors in New York have also charged Kwon with fraud, as well as eight other charges including commodity fraud, securities fraud, wire fraud, conspiracy to commit fraud, and market manipulation.
Kwon’s arrest in Montenegro comes after suspicions that he was using fake documents to move between Singapore, Dubai, and Serbia, leading to investigations by Korean authorities. Kwon went on the run after the collapse of Terra’s ecosystem, which has affected tens of billions of dollars in the cryptocurrency market.
The news of Kwon’s arrest and the subsequent charges have caused shockwaves in the cryptocurrency community, as Terraform Labs is a major player in the industry. The situation has also raised questions about the effectiveness of regulations in the cryptocurrency market and the need for stronger measures to prevent fraud.
As the legal battle unfolds, it remains to be seen what the implications of Kwon’s arrest and charges will be for the wider cryptocurrency market and its stakeholders. Nevertheless, this latest development underscores the importance of adhering to strict regulatory frameworks and ethical practices in the cryptocurrency industry.
Read more:
- “A Beautiful Day For Justice”: Researcher Celebrates Do Kwon’s Arrest
- Do Kwon Arrested In Montenegro For Using Forged Costa Rican Travel Documents, Reports Montenegro Interior Ministry
- Do Kwon Being Led Out Of A Montenegrin Court In Handcuffs