Do Kwon Faces Fraud Charges From US Authorities Hours After Arrest

Do Kwon, the Terraform Labs CEO, is now facing fraud charges in South Korea, the Securities and Exchange Commission (SEC), and federal prosecutors in New York.

Terraform Labs CEO has now been charged with fraud by United States prosecutors in New York, several hours after his reported arrest in Montenegro. The 31-year-old entrepreneur was charged with eight separate counts, including commodities fraud, securities fraud, and wire fraud, according to a March 24 report published by Bloomberg.

The minister of interior of Montenegro, Filip Adzic, reported on March 23 that a person suspected of being the former ‘crypto king’ was detained at the Podgorica airport with “falsified documents,” and authorities are now waiting for official confirmation of his identity.

Kwon was detained in Podgorica Airport with Hon Chang Joon while trying to fly to Dubai, according to Adzic.

South Korean prosecutors have issued an arrest warrant against Kwon, who now faces multiple fraud charges and breaches of capital markets law in his home state. Interpol has also issued a red notice listing for his arrest and the US SEC has filed fraud charges independently.

The charges laid against him are related to his alleged role in the collapse of the $40-billion Terra Luna Classic (LUNC) token and TerraClassicUSD stablecoin (USTC) in May last year.