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Terraform Labs (LUNA) founder Do Kwon has been indicted by US authorities hours after he was arrested in Montenegro on March 23, according to a report by the Financial Times.

Kwon has been accused of defrauding cryptocurrency customers and faces eight counts, including securities, commodity and wire fraud, according to the Financial Times. article I got it.

U.S. prosecutors issued a 12-page indictment on March 23, saying Kwon was accused of:

“Defrauding individuals about aspects of the Terra blockchain, such as its technology and how well it is being adopted by users.”

Prosecutors also cited words from an interview Kwon gave in October 2019 and his social media posts the following year that were “misleading,” leading to the indictment.Kwon’s attorney did not respond to the accusation.

Arrested in Montenegro

On March 23, Montenegrin authorities announced the arrest of Dogwon in the capital Podgorica.A few hours later, Montenegro’s Vice President Filip Azic Confirmed The individual detained was in fact Kwon himself, via his Twitter account.

Adzic’s translated text states:

“Montenegro police have detained 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.”

But even before Adzic’s confirmation, the crypto community was convinced that the arrested individual was Kwon. In December 2022, Kwon was in Serbia, which borders Montenegro. South Korean prosecutors have also confirmed Azic’s previous arrest, saying Kwon’s age, nationality and name matched Kwon’s.


In May 2022, TerraUSD (USDC) lost its peg, triggering the collapse of the Terra ecosystem and ushering in the coldest crypto winter ever.

Shortly after the investigation began, authorities accused Kwon of withdrawing $80 million from the LUNA project each month. Kwon denied all allegations and filed an attorney in August 2022.

After that, Kwon went missing. In September 2022, South Korean authorities requested Kwon’s return and cooperation with the investigation. Kwon denied running away, but did not make any contact with the prosecution. That same month, South Korea enlisted the International Criminal Police Organization, which issued a red flag to Do Kwon, urging all prosecutors around the world to locate him and arrest him.

In December 2022, Kwon was in Serbia. At the time, authorities discovered that Mr. Kwon had fled from Dubai to Serbia. But the chase didn’t end with an arrest. In February, South Korean authorities admitted to traveling to Serbia for Kwon.

By Jules

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