Do Kwon, the man behind the Terra LUNA ecosystem, was reportedly arrested in Montenegro, Southern Europe. The 31-year-old man has long been a police target after his company Terraform collapsed.
Do Kwon was secured at the Podgorica airport, said Montenegro’s Interior Minister, Filip Adzic. According to Business Insider, he allegedly provided documents under a false identity.
After Luna’s value plummeted in the market, Do Kwon had to face several problems throughout the year. Including having to face a number of lawsuits in several countries, not only about the company but also related to his passport.
Here are 5 lawsuits that Do Kwon may be charged with:
Lawsuits in the US
In June and July last year, US law firms Scott+Scott and Bragger Eagle & Squire filed a lawsuit against Do Wkon and a number of related parties. The lawsuit was filed on behalf of Terra investors.
The defendants are said to have participated in the sale of unregistered securities. Terraform Labs is even said to have defrauded investors and encouraged them to buy tokens. In the end, the price was artificially inflated.
Do Kwon must also face a lawsuit filed by Matthew Albright in New York. The lawsuit dated August 25, 2022 calls UST a Ponzi scheme and is backed by high yields derived from the Anchor Protocol.
Violating South Korea’s Capital Market Law
Apart from the US, Do Kwon also had to face the law in South Korea. Local prosecutors have issued arrest warrants for him and a number of company employees in relation to Luna’s collapse.
They, including head of research Nicholas Platias and staff member Han Mo, are said to have violated capital market laws.
Arrest warrant from Interpol
In late September, Interpol also issued an arrest warrant for Do Kwon and this has also been confirmed by the Seoul Southern District Prosecutor’s Office.
Passport Cancellation in South Korea
Do Kwon’s passport has been requested to be returned since last October by the South Korean foreign ministry. Otherwise, the validity period of his passport will expire and Do Kwon will have difficulty traveling to the country.
Terra lawsuit in Singapore
In Singapore, 369 investors filed a lawsuit against Do Kwon. The collapse of TerraUSD is said to have affected them who had to suffer losses of up to US$57 million.
