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Do Kwon, the co-founder of failed corporations TerraUSD and Luna, is accused of defrauding traders of $40 billion
South Korean cryptocurrency developer Do Kwon, who’s dealing with Safety and Alternate Fee (SEC) prices within the US over allegations he misled traders, has been arrested in Montenegro, in line with a authorities official within the Balkan nation.
“Montenegrin police have detained an individual suspected of being one of the vital needed fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,” learn a tweet from the nation’s inside minister, Filip Adzic, on Thursday.
Adzic added in a subsequent tweet that the individual believed to be Kwon had been detained at Podgorica airport and that he had been making an attempt to journey with solid paperwork.
The SEC filed a civil fraud lawsuit in opposition to Kwon and Terraform Labs PTE Ltd in a Manhattan federal court docket final month, amid allegations that he had withheld dangers related to the TerraUSD cryptocurrency. Kwon was additionally alleged to have misled traders about how one other cryptocurrency, Luna, was utilized in South Korea.
The submitting accused Kwon of “orchestrating a multi-billion greenback crypto asset securities fraud.”
Each currencies collapsed final yr, erasing round $40 billion in worth in only a matter of days and wiping out the financial savings of 1000’s of traders.
South Korean prosecutors obtained an arrest warrant for Kwon in September 2022. They had been additionally granted a so-called ‘purple discover’ from international legislation enforcement company Interpol, which expanded the seek for him.
It was reported by the Yonhap information company in December that Kwon was in hiding in Serbia, though a number of months beforehand he had denied claims that he was “on the run or something comparable.” “For any authorities company that has proven an curiosity to speak, we’re in full cooperation and we don’t have something to cover,” Kwon wrote on Twitter in September, with out revealing his location.
In an interview with the Wall Road Journal final June, Kwon denied any allegations of wrongdoing, saying: “There’s a distinction between failing and operating a fraud.”
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