Police have arrested the Terraform Labs Founder Do Kwon in connection with a $40 billion (Ksh 5.3 trillion) crash of the firm’s Cryptocurrency that devastated retail investors around the world.
According to News Agencies, Montenegro Interior Minister Filip Adzic said on Twitter that police arrested an individual who is believed to be one of the most wanted deserters.
South Korea’s Justice Ministry on Friday, March 24 confirmed the arrest of Kwon and another unidentified individual linked to the cryptocurrency crash and said it will proceed with steps to extradite them to South Korea.
Both South Korea and Montenegro are signees to the European Convention on Extradition.
South Korea asked Interpol in September to circulate a “red notice” for the 31-year-old Kwon across the agency’s 195 member nations to find and apprehend him.
Do Kwon and the other unidentified man had been hiding in Serbia but moved to Montenegro after South Korean investigators tracked their whereabouts and asked Serbian authorities to detain them, the ministry said.
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The men were arrested at Montenegro’s Podgorica Airport while trying to depart for Dubai using fake Costa Rican passports, the ministry said.
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Kwon and five others connected to Terraform are wanted because of allegations of fraud and financial crimes in relation to the implosion of its digital currencies in May 2022.
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TerraUSD was designed as a “stablecoin,” which is pegged to stable assets like the U.S. dollar to prevent drastic fluctuations in prices.
About $40 billion (5.3 trillion) in market value was erased for the holders of TerraUSD and its floating sister currency, Luna after the stablecoin plunged far below its $1 peg in May.