Yesterday, the founder of Terraform Labs, Do Kwon, was reportedly arrested in Montenegro. Following this development, federal prosecutors in New York have charged Kwon with carrying out fraudulent activities.
Do Kwon, the founder of Terraform Labs, is reportedly facing a total of eight charges at this time, according to sources who are familiar with the report. Wire fraud, commodities fraud, securities fraud, and even conspiracy to defraud and engage in market manipulation are some of the charges that are being brought against the defendant.
The US Securities and Exchange Commission (SEC) recently brought charges against the renowned crypto tycoon, Kwon, alleging that he had misled investors of Terra USD, a stablecoin platform. Additionally, Kwon was accused of engaging in the sale of unregistered securities, a grave offense in the world of digital currencies.
The collapse of Terraform Labs in May of last year sent reverberations throughout the cryptocurrency market, creating a seismic shock that caused the total market cap to plummet and trading to turn decidedly bearish. This unfortunate event marked a turning point in the industry and highlighted the risks and uncertainties that continue to loom over the volatile world of cryptocurrencies.
In the early months of this year, it was reported that South Korean authorities were broadening their collaboration with international legal agencies and partners in an effort to facilitate the arrest and expulsion of Kwon Do-Hyung. Kwon, the alleged mastermind behind the crash of Terra-Luna stablecoin, now finds himself embroiled in a legal quagmire. It seems that the authorities are sparing no effort to bring him to justice and ensure that he pays for his alleged crimes.
