Montenegro’s law enforcement authorities made headlines when they apprehended the CEO and co-founder of Terraform Labs at the airport in the capital city.
Filip Adzic, the foreign minister of the Balkan country, revealed that Do Kwon had turned into one of the most sought-after criminals on the run.
Allegedly, the former “cryptocurrency king” is responsible for losses exceeding $40 billion, and his apprehension was made possible through the use of fake documentation.
Singapore, South Korea, and the United States have warrants out for his arrest, and it remains unclear if the person detained in Montenegro is indeed Do Kwon.
Earlier this year, the US Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and its CEO, accusing them of running a multi-billion dollar scam.
The SEC alleges that the company illegally traded a series of interconnected digital securities and that the UST algorithmic stablecoin collapsed, leading to the creation of the USTC token and LUNC, a related cryptocurrency.
Former employees of Terraform Labs have already been questioned by the FBI and the Southern District of New York (SDNY), with particular emphasis on the relationship between Chai, a South Korean payment platform, and the Terra blockchain that supported USTC.
Law enforcement officials in Singapore are conducting their own investigation into the activities of Terraform Labs and Do Kwon, as the company’s legal woes continue to mount.
In February, reports emerged that South Korean authorities had requested Serbia’s assistance in extraditing the Terraform Labs CEO. However, he fled to Dubai and then to Serbia after a warrant for his arrest was issued in September 2022.