Kwon stands accused of organising a massive cryptocurrency securities fraud involving billions of dollars. Before Terra’s crash in May, Kwon reportedly flew from South Korea to Singapore. Seoul prosecutors requested that Interpol add Kwon to the red notice list and revoked his passport. However, questions arose regarding Kwon’s whereabouts after the Singapore Police Force denied his presence in the country.
Montenegro authorities stated that Kwon used falsified travel documents from Costa Rica to board a flight to Dubai during passport control on Thursday. According to Montenegro’s interior ministry, Kwon carried travel documents from Belgium and South Korea in his luggage, with the Belgian papers revealed as forgeries following Interpol checks. This discovery raises suspicions of Kwon’s possible involvement in other illegal activities.
The Luna and Terra cryptocurrencies crashed, causing many investors to lose their savings. Following the crash of Luna and Terra, South Korean authorities have launched multiple criminal investigations. The case has changed significantly with Kwon’s arrest, which may aid South Korean investigators in moving on with their inquiries. The National Police Agency of South Korea has declared its readiness to work with the prosecutors to obtain Kwon’s extradition.
The Rise and Fall of Terr and Luna
Terraform Labs co-founder Kwon Yi, worked on several blockchain projects, such as Mirror, Prism, Astroport, and Anchor. In 2018, the company launched its cryptocurrency, Luna, followed by TerraUSD in 2020. Unlike other cryptocurrencies that are tied to fiat currency, UST used an algorithm linked to the Luna supply to retain a value of approximately $1. The Luna eventually reached a value of over $116 in April 2022.
However, in May 2022, the Luna and TerraUSD cryptocurrencies experienced a crash, causing many investors to lose their life savings. Following this, The new cryptocurrency, Luna 2.0, which was launched in June 2022, is now referred to as LUNA on various trading platforms. In the aftermath of the Luna and TerraUSD crash, the two currencies are now recognized as TerraClassicUSD and LUNC, respectively.
#BREAKING: Terra Luna founder Do Kwon charged with fraud by NYC prosecutors.
This comes after his arrest earlier today in Montinegro.
He has claimed to not be on the run as he jumped from country to country
— The Roundtable Show (@RoundtableSpace) March 23, 2023
