US authorities indicted Kwon on fraud charges the same day of his arrest.
Do Kwon, the fallen crypto kingpin who oversaw the catastrophic $40 billion collapse of two digital currencies last year, was arrested in Montenegro on Thursday and slapped with fresh fraud charges in the US.
The indictment alleges that Kwon deceived investors and customers with false and misleading statements about Terra’s technology and product offerings.The Terraform Labs co-founder is also wanted for arrest in South Korea.Federal prosecutors signaled they will extradite Kwon to face charges, Bloomberg reported. Kwon also has been wanted for arrest in South Korea since last September.
Kwon had touted TerraUSD, the value of which was pegged to the US dollar, as a stable alternative to more volatile cryptocurrencies. But the value of both TerraUSD and free-floating Luna cratered last May after a sudden crisis of confidence led investors to dump their holdings.The cryptocurrency bloodbath erased $40 billion
Kwon’s arrest comes as US authorities crack down on alleged bad actors in the crypto sector following a series of high-profile incidents that hurt public investors.
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