• Do Kwon, CEO of Terraform Labs, was arrested in Montenegro
• U.S. Securities and Exchange Commission had filed a lawsuit against Terra LUNA for engineering a $40 billion securities scam using LUNA and Terra’s algorithmic stablecoin TerraUSD (UST)
• Gary Gensler, the head of the SEC, said that Kwon did not provide investors with sufficient information on ‚crypto asset securities‘ LUNA and Terra USD.
Do Kwon Arrested in Montenegro
Law enforcement agencies all across the globe had been actively searching for Do Kwon, CEO of Terraform Labs. Finally, on Thursday in Podgorica, Montenegro, police apprehended Do Kwon. The Montenegrin police say they have captured a person they believe is Terraform Labs‘ CEO; they identify Kwon as one of the most wanted fugitives and a South Korean national.
U.S SEC Filed Lawsuit Against Creator of Terra LUNA
In September 2022, Do Kwon addressed rumors to the contrary by saying he was working closely with the appropriate authorities. Moreover, In February 2023, the U.S Securities and Exchange Commission (SEC) filed a lawsuit in U.S federal court in Manhattan accusing the creator of Terra LUNA of engineering a $40 billion securities scam using LUNA and Terra’s algorithmic stablecoin TerraUSD (UST).
Gary Gensler’s Statement
Gary Gensler, the head of the Securities and Exchange Commission stated that Do Kwon did not offer investors sufficient information on crypto asset securitiesLUNA and Terra USD.
Knock-on Effects from Network Failure
By mid-2022, due to failure on its network -the crypto market had suffered extensive losses resulting from knock-on effects from this failure which had been caused by Do Kwon’s company-Terraform Labs .
Conclusion
Do Kwen had been detained by Police in Podgorica airport after being identified as one of the most wanted fugitives following accusations from US Securites & Exchanges Commision (SEC) who accused him of engineering a $ 40 billions securites scam involving his cryptocurency -Luna & TeraUSD(UST).