The former blockchain executive is wanted by Interpol for his role in the $40 billion collapse of the Terra Luna ecosystem in May 2022.
According to a post by Montenegrin Interior Minister Filip Adjic, a person suspected to be Terra Luna co-founder Do Kwon was arrested on March 23 in the Balkan country. News outlet Vijesti confirmed that the Twitter account that posted the news came from the Montenegrin Interior Minister and that the arrested person is a South Korean national.
On the same day, local South Korean news outlet Yonhap News Agency said authorities confirmed that the arrested person was the same person as Terraform Labs CEO Do Kwon based on “photo data” as well as the name, nationality and age on their ID cards. Han Mo, an assistant to the former blockchain executive, was also reportedly arrested in Podgorica. However, the South Korean National Police Agency said it was still waiting for “fingerprint information” from Montenegrin authorities to fully verify that the arrested persons are indeed Do Kwon and Han Mo. South Korean prosecutors had previously revoked Kwon’s passport in October 2022.
“Montenegro police have detained a South Korean citizen who is suspected to be one of the wanted criminals, Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.”
As Adzic said, a person suspected of being the former "King of Cryptocurrency" was detained at Podgorica Airport for "forged documents" and authorities are awaiting official confirmation of his identity. Montenegro is geographically located south of Serbia and borders the country. Since December 2022, South Korean prosecutors have accused Kwon of hiding in Serbia, which has no extradition agreement with South Korea. On September 26, 2022, Interpol issued a red notice for the arrest of Kwon for his alleged role in the collapse of the $40 billion Terra Luna (LUNC) and Terra USD (USTC) ecosystem in May 2022. Regulators in South Korea, Singapore, and the United States
Montenegro reportedly does not have extradition agreements with either Singapore or South Korea. However, it does have an old extradition treaty with the United States and has complied with extradition requests for U.S. nationals in the past. The country also communicates with Interpol regarding extradition matters. Do Kwon has spent significant time in the United States in the past, but it is unclear whether he is a U.S. citizen or permanent resident, or whether he has committed crimes against U.S. nationals that could make him extraditable.
On February 16, 2023, the SEC charged Kwon with “orchestrating a multi-billion dollar crypto asset securities fraud involving algorithmic stablecoins and other crypto asset securities.” Since March, the U.S. Department of Justice has also been investigating Kwon for his role in the collapse of the Terra Luna ecosystem. However, no criminal charges have been filed against Kwon within the United States.
This is a breaking news story and will be updated accordingly.
