Do Kwon, Creator of Terra and Luna Cryptocurrencies Arrested in Montenegro

South Korean founder Cryptocurrency Terra, Do Kwonhas been charged with forgery and is due to appear on Friday at Montenegro before the court that will hear the extradition request.

Do Kwonwhose full name Kwon Do Hyunwas detained on Thursday at Podgorica airport along with his CFO Hong Chang Joon on the basis of a South Korean arrest warrant.

Kwon31 years old, founder Terraform Laboratoriesthe parent company of “stable cryptocurrency” Earthwhich went bankrupt in May 2022. He was charged with fraud in connection with the collapse of his company, after which it was discovered that about 40 billion dollars of investors had disappeared.

“A criminal case has been initiated against both persons for forgery of documents”reported to the police Montenegro.

Terra creator extradited to South Korea

Kwon will appear on Friday before the Podgorica High Court, where the extradition request will be considered, he said AFP judicial officer, without specifying the country that issued it.

The Montenegrin authorities indicated on the eve that Kwon used “fake Costa Rican documents” during security checks when boarding a flight to Dubai.

During the inspection of his luggage, travel documents from Belgium and South Korea were found, and Interpol checks revealed the falsity of the Belgian documents, the interior ministry said. Montenegro.

IN South Koreawhere he is accused of violating the rules of financial markets, prosecutors announced this Friday that they are going to “take steps to repatriate Kwon Do-hyun”.

“We are working on this process,” he told AFP. Kim Hee Kyungspokesman for the Seoul South District Office.

South Korea National Police Agency He stated that he would “actively cooperate” with the Montenegrin prosecutor’s office to secure his extradition.

billion dollar scam

Shortly after his arrest, a federal jury from USA charged him with eight counts, including stock fraud and online fraud.

Kwon accused of “organizing a multi-million dollar cryptocurrency scam”, said the US stock market regulator sec.

Kwon He is suspected of having fled South Korea via Singapore when his company went bankrupt in May 2022.

In September, the South Korean prosecutor’s office appealed to Interpol include his name in the red circular of the required persons, as well as confiscate his passport.

After several reports that Kwon had flown to Singaporerumors about his whereabouts intensified, especially after the Singaporean police said that the businessman was not in the country.

South Korea is a member European Convention on Extradition And Montenegro she also signed the agreement, South Korea’s justice ministry said in a statement.

“The Ministry of Justice will continue the extradition process in accordance with the law and international agreements”he added.

cryptocurrencies being investigated by regulators around the world following the collapse of various media assets, including the collapse of the trading platform FTX.

Many people lost their savings when digital currencies Moon And Earth Kwonah suffered a dizzying collapse, causing the South Korean authorities to launch several investigations.

“Kwon caused too much harm to too many people, something that came with many unexplained risks”he told AFP Cho Dong GeunHonorary Professor of Economics at Myeongji University in Seoul.

Basically, cryptocurrency The so-called stablecoin or “stablecoin” guarantees greater stability for investors in this highly volatile environment.

Its price may be related to the price of traditional currency or tangible assets, but this does not apply to Earthwhich was linked to another crypto asset developed Luna Foundation Guardalso created Kwon.

AFP

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