Terraform Labs Co-founder Do Kwon Reportedly Arrested in Montenegro

• Law enforcement agencies all across the globe have been actively searching for Kwon.
• Do Kwon was reportedly apprehended at the Podgorica airport.

Finally, on Thursday in Podgorica, Montenegro, police apprehended Do Kwon, CEO of Terraform Labs. The Montenegrin police say they have captured a person they believe is Terraform Labs’ CEO; they identify Kwon as one of the most wanted fugitives and a South Korean national.

Over the last several months, law enforcement agencies all across the globe have been actively searching for Kwon. By mid-2022, the crypto market had suffered extensive losses as a result of the Terra network’s failure and its knock-on effects. Kwon was reportedly apprehended at the Podgorica airport. This is according to a statement released by the Montenegrin Ministry of the Interior.

One interpretation of the minister’s remarks reads as follows:

“Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.”

U.S SEC Filed a Lawsuit

Moreover, the CEO of Terraform Labs denied being “on the run” last year. In September 2022, he addressed rumors to the contrary by saying the following. At the time, Kwon said he was working closely with the appropriate authorities.

Furthermore, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit in U.S. federal court in Manhattan in February 2023, accusing the creator of Terra LUNA of engineering a $40 billion securities scam using LUNA and Terra’s algorithmic stablecoin TerraUSD (UST). 

Gary Gensler, the head of the Securities and Exchange Commission, had said that Kwon did not offer investors sufficient information on the ‘crypto asset securities’ LUNA and Terra USD.