Terraform Founder Do Kwan Arrested in Montenegro, South Korea to Seek Extradition of Crypto Fugitive

Kwon, whose full name is Kwon Do-hyung, has been accused of fraud over his company Terraform Lab's dramatic collapse last year.

Terraform Founder Do Kwan Arrested in Montenegro, South Korea to Seek Extradition of Crypto Fugitive

Photo Credit: YouTube/ Terra

Kwon reportedly flew from South Korea to Singapore ahead of the company's crash in May last year

Highlights
  • Terraform Labs' collapse wiped out about $40 billion of investors' money
  • The US charged Do Kwan with eight counts
  • Do Kwan was arrested at the Podgorica airport in Montenegro
Advertisement

South Korea will seek the extradition of fugitive crypto entrepreneur Do Kwon, prosecutors told AFP Friday, after the Terraform founder was arrested in Montenegro and hit with US fraud charges.

Kwon, whose full name is Kwon Do-hyung, has been accused of fraud over his company Terraform Lab's dramatic collapse last year, which wiped out about $40 billion (roughly Rs. 3,31,166 crore) of investors' money and shook global crypto markets.

The 31-year-old was arrested at the Podgorica airport in Montenegro on a South Korean warrant, the country's interior ministry said Thursday.

Shortly after, the United States charged him with eight counts, including securities fraud and wire fraud, which followed a lawsuit by the US Securities and Exchange Commission.

In South Korea, where Kwon is wanted for violations of the country's capital markets act, authorities confirmed Friday that they would seek his extradition.

"South Korean prosecutors will take steps to repatriate Kwon Do-hyung. We are working on the process," Kim Hee-kyung, a spokeswoman for the Seoul Southern District Prosecutors' Office, told AFP.

Kwon reportedly flew from South Korea to Singapore ahead of the company's crash in May last year.

In September, Seoul prosecutors requested that Interpol place him on the red notice list across the agency's 195 member nations, and also revoked his passport.

But questions about his whereabouts intensified after the Singapore Police Force said that he was not in the country.

Montenegro authorities said Thursday that Kwon had "used falsified travel documents from Costa Rica" during passport control for a flight to Dubai.

Inspection of their luggage also found travel documents from Belgium and South Korea, while Interpol checks discovered that Belgian documents were forged, Montenegro's interior ministry added.

Many investors lost their life savings when Kwon's Luna and Terra entered a death spiral, and South Korean authorities have opened multiple criminal probes into the crash.

South Korea's National Police Agency said it would collaborate with the country's prosecutors as they seek Kwon's extradition.

"As an organisation that works closely with the Interpol, we will actively cooperate with the Seoul Southern District Prosecutors' Office," Jeong Beom-seok, an official from the National Police Agency, told AFP.

Cryptocurrencies have come under increasing scrutiny from regulators across the globe following a string of recent controversies, including the high-profile collapse of the exchange FTX.

Kwon is accused of "orchestrating a multi-billion-dollar crypto asset securities fraud", according to the US Securities and Exchange Commission.


Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Jio's Unlimited 5G Plans Put Airtel on Back Foot in India, Delay Profits: JP Morgan
Bitcoin, Ethereum and Most Cryptocurrencies Rebound Despite Regulatory Crackdown
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »