US Prosecutors Charge Terra (LUNA) Founder Do Kwon With Eight Fraud Charges Relating to the 2022 Crypto Crash
Do Kwon, the co-founder of Terraform Labs, was arrested on Thursday at the airport in Podgorica, Montenegro, and charged by federal authorities in New York just hours later.
U.S. District Judge Laura Taylor Swain in the Southern District of New York has indicted Kwon on eight counts, including fraud, commodities fraud, securities fraud, wire fraud, and market manipulation. The indictment is 12 pages long. The United States also wants to confiscate Kwon’s assets related to the reported offenses.
The indictment, issued by US Attorney Damian Williams, states, “The defendant must turn over to the US… any property, real and personal, that constitutes or derives from proceeds traceable to the commission of said offenses, which is not limited to a sum of money in US currency indicating the amount of proceeds known to the commission of said offences.”
After the failure of Terraform Labs’ Terra (LUNA) token and TerraUSD (UST) stablecoin, which resulted in losses of more than $40 billion, Kwon went into hiding.
According to CBS News, Montenegro’s police detained Kwon as he attempted to board a trip to Dubai using a fake Costa Rican passport. Minister of Internal Affairs Filip Adzic tweeted about the arrest, and South Korean officials subsequently verified the crypto fugitive’s identity using photographic and fingerprint data.
Currently, Kwon is jailed in Montenegro. Bloomberg says that the United States and his native South Korea, which filed an arrest order for him in September, demand his extradition.
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