US Prosecutors File Suit Against Terra (LUNA) Co-Founder Do Kwon for 8 Counts of Fraud in Connection to 2022 Crypto Collapse


Federal prosecutors in New York have filed a lawsuit against Terraform Labs co-founder Do Kwon shortly after his arrest at the Podgorica airport in Montenegro on Thursday.

The 12-page indictment from the United States District Court for the Southern District of New York shows that Kwon is facing eight counts, which include conspiracy to defraud, two counts of commodities fraud, two counts of securities fraud, two counts of wire fraud and conspiracy to defraud and engage in market manipulation. 

The US also seeks to seize Kwon’s assets connected to the offenses charged.

Reads the indictment signed by US Attorney Damian Williams,

“The defendant shall forfeit to the United States…any and all property, real and personal, that constitutes or is derived from proceeds traceable to the commission of said offenses, including but not limited to a sum of money in United States currency representing the amount of proceeds traceable to the commission of said offenses.”

Kwon went on the run after Terraform Labs’ Terra (LUNA) token and TerraUSD (UST) stablecoin imploded, causing over $40 billion in losses.

CBS News reports that Montenegro’s police apprehended Kwon while attempting to board a flight to Dubai with a false Costa Rican passport. The country’s Minister of Internal Affairs Filip Adzic announced the arrest on Twitter and South Korean authorities later verified the crypto fugitive’s identity based on photographic data and fingerprint information.

Kwon is currently detained in Montenegro. Bloomberg reports that both the US and South Korea, the 31-year-old’s native country which issued his arrest warrant in September, are seeking his extradition.

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Featured Image: Shutterstock/Pattern Trends

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