The Whole World Was Looking For Him: Cryptocurrency Scammer Do Kwon Arrested

Do Know has just been arrested in Montenegro, while trying to board a flight to Dubai, with falsified documents in his hands to hide his true identity. The man behind the LUNA cryptocurrency and UST stablecoin crash case had been wanted for almost a year and the start of his run, during which dozens of charges were brought to him, both on the American side and in South Korea, his country of origin.

Interpol last September issued a red notice to his expected, taking his search to another level – and making Do Kwon’s name the most wanted man in the cryptocurrency scandals. In May 2022, his mismanagement of the company Terraform Labs, which exploited the cryptocurrency LUNA and the algorithmic stablecoin UST, led him to lose $45 billion from thousands of investors, institutions and individuals.

It remains that said to confirm that Do Kwon had the intention to scam everyone and get rich on the backs of others. But the fact that South Korea was asked to Interpol to take charge of the case confirmed the runaway of the man. An element that does nothing good about his intentions and his fears of serving a heavy sentence if his guilt is proven.

United States and South Korea fight over Do Kwon

The United States, which as in Europe had many investors involved, charged the 31-year-old with online fraud, organized gang fraud, and seven other counts alleging he allegedly “misled investors about many aspects of the Terra blockchain, including the technology used and the extent of its user adoption”can we read in an indictment, relayed by the log The world.

Now the United States and South Korea must come to an agreement. Until then, it had been agreed with Interpol that Do Kwon’s extradition would be in the direction of South Korea. But the United States is particularly motivated and willing to take charge of the trials. Whether the man arrested in Montenegro this week leaves for New York or Seoul, the two countries will have to agree. A Technological cruncha spokesman for South Korean prosecutors said they would discuss with “related parties” as soon as possible.

A whole sector damaged

Over time, the technical explanation for the price crash of Luna and the stablecoin UST resulted in more down-to-earth accusations: to maintain the prices of the two cryptocurrencies (UST was pegged to the dollar) , the defendants including Do Kwon would have used parallel and hidden means rather than their so-called miracle algorithm, which was the strength and publicity of the Terraform Labs protocol.

As a result of this case, it’s not just funds placed on Terraform Labs cryptocurrencies that have disappeared. The consequences have been much broader with a deep decline in investor confidence in blockchain projects, a for any stablecoin technology not backed by real reserves in the fiat currency they are pegged to, and a fall in the price of Bitcoin. The crypto winter of 2022 was particularly reinforced by the Terra Luna affair and many Web3 projects had to go out of business due to lack of exposure.