Do Kwon Arrested, Montenegrin Officials Say
The former founder was arrested at the airport for “falsified documents”
Artwork by Axel Rangel modified by Blockworks
Do Kwon, founder of the now collapsed Terraform Labs, has been arrested in Montenegro, local officials say.
Montenegrin police have detained the disgraced entrepreneur at the Podgorica airport, the country’s minister of interior, Filip Adzic, tweeted.
“The former ‘cryptocurrency king,’ who is behind losses of more than $ 40 billion, was detained at the Podgorica airport with falsified documents,” Adzic wrote.
Montenegrin officials directed Blockworks to Mr. Adzic’s Twitter account for further information.
The depeg of the TerraUSD stablecoin resulted in a more than $40 billion loss by crypto investors and institutions.
Unlike stablecoins such as USDC, USDT and DAI, TerraUSD was not backed by reserves and maintained its peg to the dollar through an algorithm, which ultimately failed.
Do Kwon was charged by the SEC for “orchestrating” cryptocurrency securities fraud earlier this year.
Updated March 23, 2023 at 11:26 am ET: Added additional context throughout.
Updated March 23, 2023 at 1:32 pm ET: Added response from Montenegro government official.
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