Filip Adzic, Minister of the Interior of Montenegro, announced today the arrest of an individual suspected to be Do Kwon, the co-founder of Terraform Labs and a key figure in the collapse of the $40 billion Terra Luna (LUNC) and Terra USD (USTC) ecosystem.
The South Korean national was detained at Podgorica airport with falsified documents, and Montenegrin authorities are currently awaiting official confirmation of the suspect’s identity.
Adzic confirmed the arrest in a post on his official Twitter account, stating:
“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.”
Local news outlet Vijesti has since verified the authenticity of the tweet and the arrest of a South Korean national.
Since December 2022, South Korean prosecutors have alleged that Kwon was hiding in Serbia, a country with no extradition agreement with South Korea. Montenegro, which shares a border with Serbia, has now become the center of attention in this high-profile case.
Do Kwon has been on the run since the Interpol issued a Red Notice for his arrest on September 26, 2022. Kwon is wanted by regulatory authorities in South Korea, Singapore, and the United States for his alleged role in the collapse of the Terra Luna and Terra USD ecosystem in May 2022, which left billions of dollars’ worth of investor funds in limbo.
The arrest has sent shockwaves through the cryptocurrency community, as Kwon was once considered a “cryptocurrency king” before the collapse of the Terra Luna ecosystem.
If confirmed to be Do Kwon, this arrest may mark a significant step forward in the ongoing efforts by authorities to hold those responsible for the Terra Luna debacle accountable.
As the investigation continues and authorities work to confirm the identity of the individual arrested, the global cryptocurrency community will be watching closely to see what impact this development may have on the future of the industry.