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Do Kwon, former crypto darling and now fugitive, has been arrested in Montenegro. Kwon was the driving power behind and public face for the TerraUSD stablecoin and the Luna cryptocurrency, the collapse of which noticed an estimated $40 billion in worth disappear in a single day. Late final yr South Korea issued an arrest warrant for Kwon, who swiftly went into hiding whereas publicly denying he was in hiding. I assume that is one good use for Twitter.

Kwon’s arrest was introduced by Montenegro’s inside minister Filip Adzic, additionally on Twitter, who mentioned (through machine translation) “Montenegrin police have detained an individual suspected of being one of many world’s most needed fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.

“The previous ‘cryptocurrency king’, who’s behind losses of greater than 40 billion {dollars}, was detained on the Podgorica airport with falsified paperwork, and South Korea, the USA and Singapore are demanding [his extradition].”

Kwon was making an attempt to get to Dubai utilizing a faux Costa Rican passport, and was additionally in possession of a faux Belgian passport. Adzic mentioned the authorities have been ready for official affirmation of Kwon’s id, and South Korean police have subsequently verified that the arrested man’s fingerprints match their data. In addition to being sought-after by South Korea, Kwon can be needed in Singapore, and in February U.S. prosecutors introduced they might cost him with fraud: Particularly securities fraud, wire fraud, commodities fraud and conspiracy, per the indictment.

It had been thought that Do Kwon was in Serbia, which shares a border with Montenegro, and the South Koreans had even gone so far as sending officers to Belgrade with the intention to put together the bottom for extradition (as there’s at present no extradition treaty between the international locations). Montenegro doesn’t have extradition treaties with South Korea or the U.S. however that solely means it’s going to take a bit of longer earlier than Kwon’s cuffed-up on a aircraft: Where he’ll face trial is the larger query.

Oh nicely. I suppose if you are going to, within the phrases of the US prosecutors, “orchestrate a multi-billion greenback crypto asset securities fraud” then the faux passports and secret identities should have appeared like a good suggestion on the time. Kwon has been silent on social media since February 1, and his legal professionals are but to touch upon his arrest. 

The collapse of TerraUSD and Luna noticed the worth of each plunge to near-zero in Might 2022, and triggered an enormous wave of crypto promoting. It obtained sufficiently big to have an effect on the crypto sector’s poster boys together with Bitcoin and Ethereum, and ever since this level we have seen one crypto catastrophe after one other (the latest being the collapse of Silicon Valley Financial institution). Sadly for Do Kwon, it’s going to quickly be time to pay the piper.