Terra founder Do Kwon said to be arrested in Montenegro

Do Kwon, the founder of Terraform Labs and creator of the collapsed stablecoin Terra, has been indicted by federal prosecutors in the Southern District of New York on eight counts of fraud, including “wire fraud, commodity fraud, securities fraud and conspiracy to commit fraud.” and engage in market manipulation”, accordingly The New York Times. Prosecutors have told the media that they will seek Kwon’s extradition.

The charges follow his apparent arrest in Montenegro on Thursday, which was first reported through social media posts by Montenegrin Interior Minister Filip Adzic on twitter (although not verified, whether through Twitter Blue or legacy means), and on Facebook (where he is verified but the blue ticks from facebook have been wrong before).

Yonhap News in Korea The South Korean National Police are reportedly awaiting fingerprint confirmation that the arrested person is in fact Do Kwon.

Last year, the collapse of the Terra/Luna algorithmic stablecoin ecosystem was one of the early events in the industry’s downturn, which the SEC says constituted a massive fraud that vaporized over $40 billion in value. There was reports that Interpol has issued a “Red Notice” on Kwonas prosecutors in the US and South Korea tried to have him arrested despite Kwon’s tweets assert “I’m not ‘on the run’ or anything like that.”

Accordingly Yonhap NewsThe Korean police issued a statement on the arrest, saying, “We checked the person’s age, nationality and name with the ID card and confirmed that it is the same person as CEO Kwon with photo data.”

Updated March 23 at 8:31pm ET: Kwon has been charged with fraud by federal prosecutors.