Do Kwon, co-founder of Terraform Labs, is said to have been detained in Montenegro

The former blockchain executive is wanted by Interpol for his role in the $40 billion collapse of the Terra Luna ecosystem in May 2022.

On March 23, an individual believed to be Terra Luna co-founder Do Kwon was detained on Montenegro’s territory, as stated in a post made by Minister of the Interior Filip Adzic. Local media outlet Vijesti has confirmed that the Twitter account that made the announcement is from the Minister of the Interior of Montenegro and that the person arrested was a South Korean citizen ever since it was first made public.

The same day, Yonhap News Agency, a local South Korean news outlet, reported that authorities had confirmed that the arrested person was the same person who was CEO of Terraform Labs, Do Kwon, based on “photo data” as well as the name, nationality, and age on an identification card. Han Mo, the former blockchain executive’s assistant, was reportedly arrested in Podgorica as well. The National Police Agency of South Korea, on the other hand, stated that it was still awaiting “fingerprint information” from authorities in Montenegro in order to fully confirm that the arrested individuals are in fact Do Kwon and Han Mo. In October 2022, South Korean prosecutors had revoked Kwon’s passports.

“South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,” who is suspected of being one of the most wanted fugitives, has been detained by Montenegrin police,”

Adzic said that a person who was thought to be the former “cryptocurrency king” was detained at the airport in Podgorica with “falsified documents” and that authorities are waiting for official confirmation of their identity. Montenegro is topographically south of Serbia and offers borders with the country. Since Dec. 2022, South Korean examiners have asserted that Kwon was concealing in Serbia, where no removal arrangement exists with South Korea. An Interpol red notice for Kwon’s arrest was issued on September 26, 2022, for his alleged involvement in the May 2022 failure of the $40 billion Terra Luna (LUNC) and Terra USD (USTC) ecosystems. He is likewise needed by administrative experts in South Korea, Singapore, and the U.S.

Montenegro apparently doesn’t have a removal concurrence with either Singapore nor South Korea. However, it does have an established extradition treaty with the United States and has previously granted requests for extradition of U.S. citizens. The nation likewise speaks with Interpol on removal matters. Do Kwon has spent a lot of time in the United States in the past, but it is not clear if he is a U.S. citizen or permanent resident or if he has committed crimes against U.S. citizens in order to be extradited.

Kwon was accused of “orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities” by the U.S. Securities and Exchange Commission on February 16, 2023. The US Department of Justice has also been looking into Kwon’s role in the breakdown of the ecosystem on Terra Luna since March. However, Kwon has not been the subject of any criminal investigations within the United States.