Terraform Labs founder Do Kwon was charged with 8 counts of various fraud by US federal prosecutors shortly after his arrest at the airport in Podgorica, Montenegro. Do Kwon had false identity documents when he was arrested and could be prosecuted for using falsified documents. The South Korean authorities are preparing to organize his repatriation.
Do Kwon faces new charges
Just hours after stopping at Podgorica airport in Montenegro, Do Kwon has been charged with 8 new charges dealing with different types of fraud by US federal prosecutors. These lawsuits are in addition to the Securities and Exchange Commission (SEC) civil lawsuits already brought against him previously.
Outside US jurisdiction, Do Kwon is also the target of prosecution by South Korean authorities and a red notice issued by Interpol. According to the new complaint filed against him, the founder of Terraform Labs is accused, among other things, of of having made misleading statements for several years concerning Terra (LUNA).
More specificly, he is accused of having lied about the way in which the UST was insuredthe algorithmic stablecoin of Terra having completely lost its parity to the dollar.
Following Do Kwon’s arrest at Podgorica airport, it turns out that he was accompanied by his financial director Hon Chang Joon and that he had false identity documents from Costa Rica. According to a local newspaper, Montenegro may sue Do Kwon for using falsified documentswhich is punishable by imprisonment for 3 years in the territory.
Since the beginning of his run, the founder of Terra would have sailed between Singapore, Dubai (where he was trying to go when he was arrested) and Serbia, a neighboring country of Montenegro.
According to AFP, South Korean prosecutor’s office reportedly preparing to arrange Do Kwon’s repatriation soon. A spokeswoman for the Seoul prosecutor’s office said: South Korean prosecutors to take steps to repatriate Kwon Do-hyung [son véritable nom, NDLR]. We are working on it “.
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