According to the Montenegrin Interior Minister Filip Adzic Terraform Labs‘s co-founder and CEO Do Hyeong Kwon was detained on Thursday at an airport in the Montenegrin capital, Podgorica.
Adzic, “Montenegro police, co-founder and CEO of Singapore-based Terraform Labs, is a South Korean national. Do KwonDetained a person on suspicion of being one of Turkey’s most wanted fugitives,” he said.
Montenegro officials also stated that they are still trying to confirm whether the detainee is Kwon, based on the alleged arrest of the person with false documents.
News sources in South Korea also shared the information that “a person presumed to be the CEO of Terraform Labs” was arrested in Montenegro. The country’s national police agency reportedly “confirmed” that the person arrested “is the same person as CEO Kwon, with photo data.”
The arrest came almost a year after the Terra ecosystem collapsed last May. As Koinfinans.com reported, this event plunged the digital assets industry into a crypto winter and was one of the major reasons behind the failure of several firms such as crypto hedge fund Three Arrows Capital (3AC). After the events, an average value of $ 40 billion was deleted from the markets.
According to CoinGecko, after the announcement of Kwon’s potential arrest, the price of LUNA dropped 8% from $1.40 to $1.30 in an hour.
Like Sam Bankman-Fried, founder and former CEO of FTX, Kwon saw his reputation quickly tarnished by the collapse of his project. Although Kwon was once a bombshell on crypto Twitter, his account was released in December, shortly after he accused Bankman-Fried of triggering the collapse of the Terra ecosystem. closed.
This is fairly public knowledge at this point, but the large currency contraction that UST went through in Feb 2021 was started by Alameda, when they sold 500mm UST in minutes to drain its curve pools during the MIM crisis
— Do Kwon 🌕 (@stablekwon) December 8, 2022
Since the developments have not been officially confirmed, the details of the news will be communicated separately.
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