Do Kwon faces fraud charges from US prosecutors hours after arrest

The Terraform Labs CEO is now facing fraud charges in South Korea, the Securities and Exchange Commission and federal prosecutors in New York.

Terraform Labs CEO Do Kwon has been charged with fraud by United States prosecutors in New York, just hours after he was reportedly arrested in Montenegro.

The 31-year-old entrepreneur was charged with eight separate counts, including securities fraud, commodities fraud and wire fraud, according to a March 24 report from Bloomberg.

Filip Adzic, the minister of interior of Montenegro reported on March 23 that an individual suspected of being the former “cryptocurrency king,” was detained at the Podgorica airport with “falsified documents,” and authorities are awaiting official confirmation of identity.

Kwon was detained in Podgorica Airport with Hon Chang Joon while trying to fly to Dubai, Adzic stated.

South Korean prosecutors have issued an arrest warrant against Kwon, who faces a series of fraud charges and breaches of capital markets law in his home state. Interpol has also issued a red notice listing for his arrest and the United States Securities Exchange Commission (SEC) has also filed fraud charges of their own.

The charges laid against him are in relation to his alleged role in the collapse of the $40-billion Terra Luna Classic (LUNC) token and TerraClassicUSD stablecoin (USTC) in May 2022.

This is a developing story, and further information will be added as it becomes available.