Do Kwon, the co-founder and former CEO of Terraform Labs, has been arrested by the Montenegrin police at the Podgorica airport, according to Montenegrin Minister of Interior Filip Adzic.
Do Kwon had reportedly been hiding in Serbia for a prolonged period, following accusations by the United States Securities and Exchange Commission (SEC) that he played a significant role in the collapse of the Terra (LUNA) ecosystem.
The SEC accused Terraform Labs of orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities. The collapse of the ecosystem resulted in losses exceeding $40 billion. Do Kwon had been sought after by South Korea, the US, and Singapore, and was reportedly carrying falsified documents when he was apprehended.
Do Kwon had taken refuge in Singapore after a court in Seoul issued an arrest warrant against him, asking Interpol to revoke his passport and issue a red notice.
Terraform Labs suffered an exceptionally poor performance following news that Do Kwon was hiding in Serbia, where he was discovered to be after Korean investigative authorities obtained information.
The arrest of Do Kwon is likely to have significant implications for the cryptocurrency industry, as it is yet another example of the need for increased regulatory oversight.
The collapse of the Terra ecosystem and the subsequent loss of billions of dollars highlights the risks associated with investing in cryptocurrencies, and underscores the need for investors to exercise caution when considering investing in such assets.
