Former blockchain executive Do Kwon, by regulatory authorities in South Korea, Singapore, and the U.S. for alleged fraud charges, has been reportedly arrested in Montenegro with his aide.
The Terra Luna ecosystem experienced a collapse amounting to $40 billion, in May 2022, which was attributed to the actions of a former blockchain executive, Do Kwon. Since then, regulatory authorities from several countries, including South Korea, Singapore, and the United States, have been pursuing him to face charges related to his alleged involvement in the collapse.
There have been some significant developments in the case. On March 23, 2023, an individual suspected to be Do Kwon was arrested based on “photo data” and identification information in Montenegro, where he was found with falsified documents.
The authorities are waiting for official confirmation of the suspect’s identity, and fingerprint verification is yet to be done. Han Mo, Kwon’s aide, was also reportedly arrested with him. However, South Korean authorities are waiting for fingerprint verification from Montenegrin authorities to confirm their identities.
Interpol had issued a red notice for the arrest of a former blockchain executive who is wanted not only by Interpol but also by regulatory authorities in South Korea, Singapore, and the U.S., with the latter having charged him on Feb. 16, 2023, for a “multi-billion dollar crypto asset securities fraud.”
While Montenegro reportedly does not have an extradition agreement with Singapore or South Korea, it has an old treaty with the U.S. and has complied with extradition requests for U.S. nationals in the past. However, it is unclear if Kwon is a U.S. citizen or has committed criminal acts against U.S. nationals for potential extradition proceedings.
There is also an ongoing investigation by the U.S. Securities and Exchange Commission, which has charged Kwon with orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities. The U.S. Department of Justice has also been probing his role in the collapse of the Terra Luna ecosystem, although no criminal complaints have been filed against him within the territory of the United States.