Do Kwon, founder of Terraform Labs, has been charged with fraud by U.S. federal prosecutors in New York after being arrested by police in Montenegro. Kwon is also under investigation in South Korea and was on an Interpol wanted list in connection with the collapse of TerraUSD last year. In February, the U.S. Securities and Exchange Commission filed civil charges against Kwon, alleging that he misled investors. Kwon now faces criminal charges in the U.S. and further investigations in South Korea and Montenegro.
Kwon is facing extradition to the United States for allegedly engaging in a conspiracy to defraud, commodities fraud, securities fraud, wire fraud and market manipulation. The Department of Justice has charged Kwon with these crimes, which could result in a lengthy prison sentence if he is found guilty. Kwon is accused of using his position as a cryptocurrency trader to manipulate the market and commit fraud. He allegedly used his knowledge of the market to make trades that would benefit him and his associates, while causing losses for other investors. If convicted, Kwon could face serious consequences for his actions.”
Terraform Labs CEO Do Kwon has been accused of making false and misleading statements about the company’s cryptocurrency, UST, and engaging in market manipulation. The filing alleges that Kwon made a number of untrue statements over the course of several years, including on TV appearances and tweets from accounts associated with Terraform Labs. It is claimed that Kwon and others agreed to defraud purchasers of UST by deceiving them about the effectiveness of the algorithmic mechanism that was meant to ensure the stability of its price.
Kwon Oh-joon, the CEO of Singapore-based Terraform Labs, has been arrested in Montenegro on charges of market manipulation. According to a filing with the US Securities and Exchange Commission (SEC), Kwon allegedly contacted a US trading and investment firm, believed to be Jump Crypto, to help him alter the market price of UST. The SEC filed a complaint against Kwon, and he was arrested by police at an airport with falsified documents. The Korean National Police Agency later confirmed his identity. Kwon is now facing charges of market manipulation and fraud, and the SEC is seeking to impose civil penalties and disgorgement of ill-gotten gains.
