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

Do Kwon South Korea Singapore city Singapore Serbia Montenegro county Story CEO Citizens Terra Luna

23.03.2023 - 17:01

Reading now: 844

cryptonews.com:

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

In a Thursday tweet, Montenegro Minister of the Interior Filip Adzic said an individual suspected of being Do Kwon has been arrested at the Podgorica airport, an international airport located in the heart of Montenegro.

"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 a tweet by Adzic.

The minister added that the former "cryptocurrency king" was detained with falsified documents. "We are waiting for official confirmation of identity," he added.

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 who put in all their life savings in the token.

Do Kwon was previously believed to be hiding in Serbia.