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UPDATE: South Korean authorities have since confirmed that the person in custody is Do Kwon.
Vice President of Montenegro Philip Azic has confirmed the arrest of an individual traveling to Montenegro in Podgorica — suspected Terra fugitive Do Quon.
A translated statement from the VP reads:
“Montenegro police have detained a person suspected of being one of the most wanted criminals, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.”
In a tweet, Adzic called Do Kwon one of the world’s most wanted fugitives, adding that the person detained had traveled with false documents.
Waiting for identity verification
In February, reports surfaced that Dokwon was hiding in Serbia, which borders Montenegro to the north. .
Adzic said it was waiting for official confirmation of the identity of the detained person. Korean authorities It was later confirmed that the person detained was Do Kwon, who was arrested for assistance.
“We have confirmed the age, nationality, and name of the person with his ID card, and confirmed that he is the same person as CEO Kwon based on the photo data.“
@FatManTerraWorked to shed light on alleged fraud at the height of Mania.
“He cheated on a bogus ecosystem built on spoofed transactions. He orchestrated a secret bailout, telling people it was “the strength of his algorithm.” And when private investors committed suicide, he joked at their expense.“
Without hesitation, he signed off, hoping that “the full force of the law” would befall him.
Terra implosion
On May 9, 2022, the UST stablecoin lost its dollar peg price, causing a significant drop in its balancing asset, Terra LUNA.
As an algorithmic stablecoin, UST has maintained its peg by easing supply by burning to decrease or minting to increase in conjunction with opposing actions occurring on balancing assets.
Before the collapse, UST had become the third largest stablecoin by market capitalization and had earned some legitimacy by doing so. But after the collapse (which was the first sign that everything was going wrong in the cryptosphere), a contagion effect rippled through the industry, causing liquidity problems elsewhere.
An investigation into the collapse has uncovered damning allegations about the Terra ecosystem. This includes intentional abuse of mirror protocols left for insiders to exfiltrate, use of shell companies for money laundering, and Do Kwon siphoning millions of dollars a month from projects.
An estimated $40 billion was lost and many lives were lost.
In an October 2022 interview with Laura Shin of the Unchained Podcast, Do Kwon said the fraud charges directed against him by South Korean authorities were unjustified.
Specifically, Do Kwon said that cryptocurrencies that are not classified as securities domestically are outside the jurisdiction of the applicable law, namely the Capital Market Law.
