•Do Kwon – the crypto executive behind the Terra USD collapse that occurred in the summer of 2022 – has been arrested and taken into custody in Montenegro.
•He was apprehended with phony passports and documents.
•The collapse of Terra USD cost crypto investors billions in hard-earned investment funds.
Do Kwon Arrested for Crypto Collapse
Crypto executive Do Kwon, who is responsible for the collapse of Terra USD in the summer of 2022, has been arrested and taken into custody in Montenegro. He was found to be holding phony passports and documents when he was apprehended by authorities. The collapse of Terra USD caused investors to lose billions of dollars as a result.
Kwon had been a fugitive since late 2022, when an arrest warrant was issued by South Korea citing him as the main person of interest behind the collapse due to his status as CEO of Terraform Labs, which created both assets (Terra USD and Luna token). In response, Kwon claimed on Twitter that he was coding from his living room rather than attempting to escape law enforcement; however, these claims were put into doubt when he went silent on social media around February 1st this year.
Fake Documents Found During Arrest
During his arrest at Podgorica airport, Montenegrin police found Kwon had falsified documents that suggested he was trying to travel to Dubai using a Costa Rican passport and another fake Belgian passport. His fingerprints have since matched those belonging to Do Kwon himself, confirming authorities now have their man.
Algorithmic Stable Coin
Terra USD had been classified as a stable coin but its value only remained consistent when people chose to believe in it because it wasn’t backed by any real collateral or fiat currency — simply an “algorithmic” stable coin system. This lack of serious backing likely caused some investors not to consider its potential instability before making investments into it.
Losses Totaling Billions
In total, over 40 billion dollars were lost due to the fall of Terra USD and Luna token combined — causing many traders individual losses totaling billions each after investing their hard-earned funds into what they thought would be safe assets during this time period given their stability classifications.