Do Kwon, the founding father of Terraform Labs and creator of the collapsed stablecoin Terra, has been charged with eight counts of fraud by federal prosecutors within the Southern District of New York, together with “wire fraud, commodities fraud, securities fraud, and conspiracy to defraud and have interaction in market manipulation,” according to The New York Times. Prosecutors have advised the media that they may search Kwon’s extradition.
The fees observe his obvious arrest in Montenegro on Thursday, which was first reported by way of social media posts by Montenegro Minister of the Inside Filip Adzic on Twitter (the place he’s unverified, whether or not by Twitter Blue or legacy means), and on Facebook (the place he’s verified, however Fb’s blue checks have been wrong before).
Yonhap News in Korea studies South Korean nationwide police are ready for fingerprint affirmation that the individual arrested is definitely Do Kwon.
Final 12 months, the collapse of the Terra / Luna algorithmic stablecoin ecosystem was one of many early occasions within the business’s slide, which the SEC alleges constituted a large fraud that evaporated over $40 billion in worth. There have been reports Interpol issued a “red notice” for Kwon, as prosecutors within the US and South Korea sought to have him arrested regardless of Kwon’s tweets claiming “I’m not ‘on the run’ or something comparable.”
In accordance with Yonhap Information, Korean police made an announcement concerning the arrest, saying, “We checked the age, nationality, and identify with the identification card the individual had, and confirmed that he was the identical individual as CEO Kwon with photograph knowledge.”
Replace March twenty third, 8:31PM ET: Kwon has been charged with fraud by federal prosecutors.