Montenegrin police said they arrested Terraform Labs founder Do Kwon, who is wanted in South Korea in connection with the company’s $40 billion cryptocurrency crash.
PODGORICA, MONTENEGRO — Montenegrin police have arrested Terraform Labs founder Do Kwon, who is wanted in South Korea in connection with the firm’s $40 billion cryptocurrency crash that hurt retail investors worldwide, the European country’s interior minister said Thursday.
“The Montenegrin police have arrested a person who is considered one of the most wanted fugitives, Do Kwon, a South Korean national,” Interior Minister Filip Adzic wrote on Twitter.
Montenegrin authorities were awaiting official confirmation of the identity of a man who was arrested at the airport in the capital Podgorica with false documents, but they believe it is Kwon, Adzic added.
South Korea asked Interpol in September to issue a “red notice” for the 31-year-old to the agency’s 195 member countries to locate and arrest him.
Kwon and five others associated with Terraform are wanted on charges of fraud and financial crimes related to the May 2022 outbreak of its digital currencies.
TerraUSD was designed as a “stablecoin” that is linked to stable assets such as the US dollar to prevent drastic price fluctuations. However, around $40 billion in market value was wiped out for owners of TerraUSD and its floating sister currency, Luna, after the stablecoin fell well below its $1 mark in May.