Do Kwon has problems in Montenegro. The South Korean man wants to appeal the extension of his detention
The co-founder of Terraform Labs was reportedly arrested at Podgorica airport.
According to media reports, the Montenegrin authorities detained a person suspected of being Do Kwon. The South Korean man was using forged identity documents, and several passports were reportedly found in his luggage. Local news media reported that the legal team of the co-founder of Terraform Labs is currently seeking to appeal the extension of his detention from 72 hours to 30 days.
Do Kwon was arrested in Montenegro
Recently, the media reported that a man of South Korean descent was detained at Podgorica airport last week. After this incident, it is speculated that this person may be the wanted co-founder of the failed Terra Project (now known as Terra Classic).
Do Kwon was once an important and recognizable person in the virtual currency industry. The ecosystem he created, which included the stablecoin Terra USD (UST) and the LUNA cryptocurrency, was trusted by many investors around the world, including popular entrepreneurs, such as Mike Novogratz. Due to the bear market that hit the digital currency sector in 2022, all the imperfections of the cryptocurrency project created by Kwon were exposed, with the holders of these virtual coins losing almost all of their invested funds.
There are many indications that the co-founder of Terraform Labs was also wanted by Interpol, which he himself denied several times via his social media accounts. When FTX crashed spectacularly and unexpectedly late last year, it temporarily diverted mainstream media attention away from Do Kwon.
According to the latest information, the man in question was most likely arrested in Montenegro. Such a statement was issued by the Minister of the Interior of the country, Filip Adzic. Previously, the whereabouts of the 31-year-old were unknown. Some commentators from the cryptocurrency industry speculated that he was hiding in Singapore or Dubai.
The Montenegrin police reportedly found false identity documents on the detainee. These passports were issued by Costa Rica and Belgium. According to local media reports, Do Kwona's legal team is seeking to appeal the 30-day extension. The complaint noted that detention for the offense of using false documents is usually limited to 72 hours. The court reportedly extended it due to the fact that the South Korean businessman is wanted in many countries and due to the possible risk of the detainee fleeing from Montenegro.
Montenegrin prosecutors stressed that Do Kwon's identity had not yet been fully confirmed at this stage.
The CEO of Terraform Labs is facing multiple allegations
Although it is not 100% certain whether the man detained in Montenegro is the co-founder of Terraform Labs, South Korean prosecutors are already demanding his extradition. After the release of information about the arrest of a man suspected of being Do Kwon, authorities from the United States also stepped in, bringing several serious charges against him.