Do Kwon has been charged with Fraud by US Prosecutors in New York, after being arrested in Montenegro
Terraform Labs CEO Do Kwon has been charged with eight separate counts, including securities fraud, commodities fraud, and wire fraud by United States prosecutors in New York, according to a March 24 report from Bloomberg.
This news comes just hours after Kwon was reportedly arrested in Montenegro with a companion while trying to fly to Dubai. According to the minister of interior of Montenegro, Kwon was detained at the Podgorica airport with “falsified documents.”
Kwon was charged with conspiracy to defraud and engage in market manipulation. The Southern District of New York claims jurisdiction over Kwon as he made a series of false and misleading statements during a TV interview that was transmitted to the Southern District of New York about the extent to which the Terra blockchain had been adopted by users. While the indictment was signed by United States Attorney Damian Williams, no date is mentioned.
Kwon is just 32 years old and is a well-known entrepreneur in the cryptocurrency industry. He is the founder of Terraform Labs, a blockchain technology company that has developed several innovative projects in the decentralized finance sector. Kwon’s arrest and indictment have sent shockwaves through the cryptocurrency community, as he was once considered a rising star in the industry.
According to reports, Kwon and his companion Hon Chang Joon were trying to flee to Dubai before they were detained in Montenegro. The minister of interior of Montenegro stated that they are awaiting official confirmation of Kwon’s identity.
The charges against Kwon are serious and carry significant penalties if he is found guilty. Securities fraud, commodities fraud, and wire fraud are all federal crimes that can result in prison time and significant fines. The charges of conspiracy to defraud and engage in market manipulation are also serious, as they suggest that Kwon may have been involved in a larger scheme to deceive investors and manipulate the market.
The arrest and indictment of Do Kwon are just the latest in a series of high-profile cases involving fraud and other criminal activities in the cryptocurrency industry. As the industry continues to grow and attract more investors, regulators and law enforcement agencies are stepping up their efforts to combat fraud and other illegal activities. It remains to be seen how Kwon’s case will play out, but one thing is certain: the cryptocurrency industry is facing increased scrutiny, and those who engage in illegal activities will be held accountable.
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