Luna Crash: Do Kwon, Fugitive Behind $40-Billion 2022 Crash Arrested, Charged With Fraud (2024)

Do Kwon, the cryptocurrency entrepreneur who was responsible for the crash of two digital currencies, TerraUSD and Luna, which resulted in a loss of over $40 billion last year, has been arrested and charged with fraud by US prosecutors. He is also the co-founder of Terraform Labs, the firm behind the multibillion-dollar crash of the cryptocurrency. Kwon was arrested in Montenegro and an eight-count indictment against him has been made public in the US District Court in Manhattan.

South Korean prosecutors have also announced their intention to seek Kwon's extradition, as he is facing criminal charges in the United States. South Korea is a member of the European Convention on Extradition, a multilateral treaty that facilitates extradition between member states, which includes Montenegro. However, it is uncertain whether Kwon will be sent to South Korea, as he could be handed over to the US.

ALSO READ: Why Did LUNA Crash?

Kwon has been under investigation for alleged fraud and tax evasion after investors in TerraUSD and Luna filed complaints against him last May, accusing him of a Ponzi scheme. He has been accused of providing false information to investors and violating capital market law. Interpol has issued a red notice for Kwon, and his passport has been invalidated.

ALSO READ: LUNA Investor Arrested For Knocking On Terra Founder Do Kwon's Door After Losing Millions

Daniel Shin, another co-founder of Terraform Labs, is also being investigated by prosecutors on charges of gaining illegal profits before the collapse of the coins.

TerraUSD was a stablecoin designed to be pegged to stable assets such as the US dollar. However, holders of TerraUSD and Luna lost more than an estimated $40 billion in market value after the stablecoin plunged far below its $1 peg in late May.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

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