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Terraform Labs founder arrested in Montenegro in relation to Luna crypto crash

Do Kwon was found attempting to flee Montenegro with falsified documents. Global warrants called for Kwon's arrest following the crash of TerraUSD & Luna 'stablecoins'.

TJ Denzer

March 24, 2023 12:00 PM

Image via Bloomberg

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One of the bigger stories in cryptocurrency in 2022 was the crash of Luna and TerraUSD stablecoins, and now one of the main perpetrators allegedly holding the reins during that collapse has been arrested. Terraform Labs founder Do Kwon has been a fugitive sought by global authorities for some time now and he was just arrested in Montenegro trying to leave the region with falsified documents.

Do Kwon’s arrest was reported by interior minister Filip Adzic, who posted of the arrest on Twitter on March 23, 2023. According to Adzic, Kwon was caught attempting to flee the country and was discovered to have had a fake Costa Rican passport on him at the time of his arrest.

“Montenegrin police have detained a person suspected of being one of the world's most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,” Adzic wrote, as translated by PC Gamer. “The former 'cryptocurrency king', who is behind losses of more than 40 billion dollars, was detained at the Podgorica airport with falsified documents, and South Korea, the USA and Singapore are demanding [his extradition].”

Do Kwon fled Korea late in 2022 following the full collapse of Luna and TerraUSD “stablecoin” cryptocurrencies which were said to be as safe and liquid as the US Dollar. In September 2022, Kwon was said to have fled to Singapore, prompting Interpol to issue a red notice for his arrest, allowing any authorities to arrest and detain Kwon to face charges and questioning. Kwon had maintained his innocence despite being “on the run” throughout the end of the year. Some of his last personal tweets were directed at the Genesis digital asset trading group and the Alameda Research crypto trading firm, which he suggested may have had a part in the collapse of TerraUSD’s value.

Nonetheless, with Kwon in custody, it remains to be seen what comes next for the Terraform Labs founder. Stay tuned as we continue to follow this story for further updates.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.