Breaking: Montenegro officials arrest man suspected to be Terra founder – Do Kwon

On Mar 23, 2023

Authorities in Montenegro – a Balkan country – have arrested a man who could potentially be Terra’s founder – Do Kwon. The news was announced by the interior minister of Montenegro – Filip Adzic – on his social media channel. In a translated Tweet, the minister stated that one of the world’s most wanted fugitives was arrested in Podgorica.

The Tweet further stated that the police has detained a man suspected to be the head of Terraform Labs. Additionally, the minister stated that Do Kwon was captured at the Podgorica airport with fake documents. The authorities are currently verifying the identity of the detained man.

Do Kwon is wanted by authorities in South Korea, Singapore, and the USA. Recently, the US Securities and Exchanges Commission (SEC) filed a fraud case against the Terra creator, claiming that his scheme resulted in the loss of 40 billion of market value. The commission also alleged that LUNA and UST were securities, which meant that Do Kwon committed securities law violations by offering them for sale without registration.

Kwon has been on the run ever since the de-pegging of algo-stablecoin resulted in the death spiral of LUNA. At the time of the crash, the Terra founder was believed to have been in Singapore. But, his whereabouts were unknown soon after South Korean authorities started investigating the collapse of Terra’s tokens and issued an arrest warrant. The Singapore police had declared that he had eloped from the country in September 2022.

The news of the possible arrest has had the price of LUNA tumbling in the market. According to CoinMarketCap, LUNA – the new token launched after the death spiral – registered a downfall of over 6 percent in the past hour, at press time. The coin was trading at a spot value of $1.30, with a market cap of $311 million. Meanwhile, the old Terra LUNA – now dubbed LUNC – did not show a massive shift in its price on the news. The coin was trading at $0.000123, with a slump of over 2% in the past hour.

The story is still developing.

This article originally appeared here.