Terraform Labs CEO Do Kwon has been indicted for fraud by US prosecutors in New York, just hours after he was allegedly arrested in Montenegro.
In a court filing signed by US Attorney Damian Williams, the 31-year-old businessman has been charged with eight separate counts, including commodity fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.
Under the first count, conspiracy to defraud, US prosecutors claim jurisdiction over Kwon because he made a series of false and misleading statements during a television interview that was broadcast, among other places, to the Southern District of New York, about the extent to which users have embraced the Terra blockchain.
translation:
ONE OF THE WORLD'S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA
Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean national Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.
โ vedbajoria (@VedBajoria) March 23, 2023
The presentation comes as Filip Adzic, Montenegro's interior minister, reported on March 23 that an individual suspected of being the former โking of cryptocurrenciesโ was detained at the Podgorica airport with โfalsified documentsโ.
The suspect, believed to be Kwon, was detained at the Podgorica airport with his business partner Hon Chang Joon while trying to fly to Dubai, Adzic said.
In a follow-up tweet, the Montenegrin Ministry of the Interior reported that Kwon used forged travel documents from Costa Rica.
Related: Terra co-founder Do Kwon says he's not 'on the run'
South Korean prosecutors issued an arrest warrant for Kwon on September 14, who faces a series of fraud charges and violations of capital markets law in his home state. Interpol has also issued a red notice list for his arrest on September 26 and the United States Securities and Exchange Commission (SEC) has also filed fraud charges on his own on February 16.
The charges brought against him are related to his alleged role in the collapse of the $40 billion Terra Luna Classic. (FAR) TerraClassicUSD token and stablecoin (USTC) last may.
Since the collapse, Kwon is reported to have moved between Singapore, Dubai and Serbia.
The South Korean Ministry of Foreign Affairs officially canceled Kwon's passport on October 20, after he he did not hand over his passport following an order of October 6.
Magazine: SEC Sues Do Kwon, Paxos Set to Litigate, SBF VPN: Hodler's Digest, Feb 12-18
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