Terra founder and crypto fugitive Do Kwon has been allegedly arrested in Montenegro.
Montenegro’s Minister of the Interior, Filip Adzic, announced via Twitter on Thursday that an individual suspected of being Do Kwon had been arrested at Podgorica airport.
“Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,” according to a translation of the tweet.
The minister added that the former “cryptocurrency king” was detained with falsified documents.
“We are waiting for official confirmation of identity,” he added.
BREAKING:
— Bankless (@BanklessHQ) March 23, 2023
DO KWON (@stablekwon) REPORTEDLY ARRESTED IN PODGORICA, MONTENEGRO pic.twitter.com/GvemUmNKij
Do Kwon is the co-founder and CEO of Singapore-based Terraform Labs, the company behind the crashed stablecoin TerraUSD and cryptocurrency Luna.
The TerraUSD stablecoin was meant to have a constant $1 value via a mix of algorithms and trader incentives involving a sister token, Luna.
However, the so-called algorithmic stablecoin lost its dollar peg in May last year after a wave of sell-offs hit the crypto market.
While Terraform Labs managed to partially repair the peg by purchasing $2B UST, the continued sell-off drained those funds, hyperinflated UST’s sister token LUNA, and crashed the price of both LUNA and UST.
The unprecedented crash of the Terra ecosystem wiped out around $40 billion from the crypto market, delivering huge losses to millions of investors around the world.
Do Kwon was previously believed to be hiding in Serbia.