Do Kwon, founder of failed crypto firm Terraform Labs, is facing charges for eight counts of fraud in New York following his arrest in Montenegro, Reuters reported.
Charges include wire fraud, commodities fraud, securities fraud, and conspiracy to defraud.
Montenegro’s Interior Ministry in said in a tweet that Do Kwon and another individual were apprehended after they used forged documents for a flight to Dubai.
Kwon was the main developer behind crypto tokens TerraUSD and Luna. Values of both coins crashed last year, costing investors and other crypto firms over US$42 billion in losses.
The US Securities and Exchange Commission (SEC) had earlier charged Do Kwon with defrauding investors. Kwon was behind a “multi-billion dollar crypto asset securities fraud” after giving out “false and misleading statements” before the tokens’ crash, the regulatory body said in a statement.
See also: UST, lies, and Hodlnaut: How a rising star fell back to earth
In addition to the US, Kwon is also facing investigations in South Korea and Singapore.
Editing by Dhania Putri Sarahtika
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