Breaking News: Terra Luna Founder Do Kwon Allegedly Arrested in Montenegro – Developing Story

Author

Ruholamin Haqshanas

Author

Ruholamin Haqshanas

About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Author Profile

Share

Copied

Last updated:

October 23, 2023 07:22 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships.

Terra founder and crypto fugitive Do Kwon has been allegedly arrested in Montenegro.

Montenegro’s Minister of the Interior, Filip Adzic, announced via Twitter on Thursday that an individual suspected of being Do Kwon had been arrested at Podgorica airport. 

“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,” according to a translation of the tweet.

The minister added that the former “cryptocurrency king” was detained with falsified documents. 

“We are waiting for official confirmation of identity,” he added. 

Interior Minister of Montenegro: https://t.co/QCLOqrC643

Translation:

ONE OF THE WORLD'S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA

Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and… https://t.co/mryGHtlAgG

— Bankless (@BanklessHQ) March 23, 2023

Do Kwon is the co-founder and CEO of Singapore-based Terraform Labs, the company behind the crashed stablecoin TerraUSD and cryptocurrency Luna. 

The TerraUSD stablecoin was meant to have a constant $1 value via a mix of algorithms and trader incentives involving a sister token, Luna. 

However, the so-called algorithmic stablecoin lost its dollar peg in May last year after a wave of sell-offs hit the crypto market. 

While Terraform Labs managed to partially repair the peg by purchasing $2B UST, the continued sell-off drained those funds, hyperinflated UST’s sister token LUNA, and crashed the price of both LUNA and UST.

The unprecedented crash of the Terra ecosystem wiped out around $40 billion from the crypto market, delivering huge losses to millions of investors around the world.

Do Kwon was previously believed to be hiding in Serbia.