Montenegro police have arrested Do Kwon, the founder of Terraform Labs and the creator of the widely-used cryptocurrency tokens Terra and Luna. Kwon had been on the run for months as an internationally wanted fugitive before being apprehended in Montenegro on Thursday.
Kwon has been accused of running a massive $40 billion fraud through his company and its tokens. The news has sent shockwaves through the cryptocurrency community, as Terra and Luna are both popular stable coins with a significant user base.
Montenegro’s Minister of Interior, Filip Adzic, confirmed Kwon’s arrest, bringing an end to his months-long flight from justice. The arrest marks a significant victory for law enforcement agencies worldwide, who have been working to crack down on crypto-related fraud in recent years.
Kwon’s arrest also underscores the need for greater regulatory oversight of the cryptocurrency industry. While crypto has often been touted as a disruptive force that can upend traditional financial systems, it has also been a fertile ground for fraudsters and scammers looking to make a quick buck.