Terraform Labs’ Do Kwon allegedly arrested in Montenegro

Montenegrin police have detained “the most wanted fugitive in the world” — Do Kwon, a South Korean national, co-founder, and CEO of Terraform Labs based in Singapore.

According to Filip Adzic, Montenegro’s interior minister, Kwon, responsible for over $40 billion in losses, was allegedly arrested at Podgorica airport with forged documents. South Korea, the United States, and Singapore are all seeking his extradition.

Currently, the Montenegrin authorities are waiting for official confirmation of his identity. Adzic named him “one of the most wanted fugitives in the world.”

Do Kwon is a South Korean entrepreneur and co-founder of Terraform Labs, a Singapore blockchain and cryptocurrency technology company. He is considered a pioneer in blockchain and has been involved in several cryptocurrency projects.

Kwon gained notoriety as the “cryptocurrency king” for his involvement in creating the stablecoin system, which is used to stabilize cryptocurrency values. However, his reputation was tarnished after the collapse of the prices of TerraUSD and Luna in 2022. The event wiped out almost $40 billion from the cryptocurrency market. That led to the bankruptcy of Three Arrows Capital, a crypto hedge fund.

Following the project’s rebranding, TerraUSD Classic and USC were still poorly received by investors due to trust concerns. 

Kwon is wanted in South Korea, the United States, and Singapore for his alleged involvement in financial crimes, including fraud and money laundering. Previous reports claimed he was hiding in Serbia.