Do Kwon arrested, the end of the race to become the most hated man in the crypto world

Aya, to the prison “. This is how Do Kwon’s career can be summed up. He is now a part of the crypto legend. The economic media had the South Koreans up to their throats about a year ago. He’s back in the news today with an incredible new story. In a tweet, Filip Adzic (Montenegro Internal Affairs) Minister) commented: IOne of the world’s most wanted fugitives arrested in Podgarica (Editor’s note: the capital of Montenegro)”. Member of government continues” Montenegrin police have arrested a person believed to be one of the most wanted fugitives, South Korean national Do Kwon, co-founder and CEO of Singapore-based Terraform Labs. The man was reportedly caught along with his CFO, Hon Chang Joon.

Do Kwon is behind one of the biggest crashes in the short history of crypto and one of the reasons for the current bear market. Initially, Do Kwon was a respected and admired figure. He was the president and founder of Terraform Labs, one of the most prominent blockchain and crypto companies in recent years. he offered arrogant profitability Thanks to the TerraUSD stablecoin and its Luna token. Terra Luna and UST (= TerraUSD) have attracted small and large investors from all over the world on trading platforms (= swapping) or specializing in earning (= earning interest under the custody of a crypto-asset).

Millions of investors (including the French) attracted by a rich APR (annualized rate of return) (up to 20%) Luna cryptocurrency and especially his stablecoin TerraUSD, supposed to be as stable as the dollar. Faced with a dismal market (bear market), Terraform Labs has promised to win big and fast. With a TerraUSD pegged to the dollar (stablecoin principle), investors believed they had found the golden chicken. The company assured that its UST (TerraUSD) is guaranteed with cryptos (including 80,000 bitcoins).

TerraUSD, the algorithmic stablecoin

This stablecoin model stood out in the cryptosphere as it is an algorithmic stablecoin. So it was not directly related to the dollar. An algorithm constantly balanced the number of coins in circulation. Basically, we sold Terra Luna when the price of TerraUSD dropped and vice versa. On paper, it was a devastating blockchain technology marvel. But in May 2022, this stablecoin exited Largest capitalization ranking with 173. In a matter of days, assets worth several billion euros disappeared in a matter of days. Whether it’s the bloody raid by big whales (companies managing massive capital) or the FUD snowball effect (Fear, Uncertainty and Doubt = “fear, uncertainty and doubt”), we’ll probably never know the end of the story.

Either way, Luna crashed, causing TerraUSD to depeg (de-index with dollars). Altcoins like Bitcoin, the entire crypto market then fell into the abyss. The extent of losses associated with the Terra Luna project is currently estimated at $500 billion. All protocols, cryptos or platforms suffered an unprecedented earthquake. Most held, but others, such as the Arrows Capital mutual fund or the Celsius Network lending platform, were swept away by the sunken wave. Not to mention the small investors (how many French?) who lost all their savings overnight.

Manhunt for a Crypto Outcast

Do Kwon was the most hated man in the crypto world even before the collapse. It was waving on Twitter” I don’t argue with the poor“or mockery” 95% of cryptocurrency projects will fail In a hideous and bizarre pseudo-genius, he was even threatened with death. 4000 people collectively organized to find him in the world. On top of that, SBF (Samuel Bankman-Fried), the former boss of FTX, could hasten the fall of Terraform Labs tokens, a few months after the Terra crash. later we found out.

Do Kwon committed his crime and promised compensation. South Korean authorities initially let him go. They were looking for him under international pressure and even issued an arrest warrant for the 31-year-old man. The man remained curiously untraceable as he stated on Twitter that he would not run away. We thought we saw it in Singapore, Dubai, Russia, Azerbaijan, Seychelles and even Serbia. He was eventually kicked out in a country bordering Serbia.

The Home Secretary continues on Twitter: The former “cryptocurrency tycoon”, responsible for the loss of more than $40 billion, was detained at the Podgorica airport with false documents. We are waiting for the identity to be officially confirmed. Do Kwon is not the subject of an international warrant,Interpol red notice Released by South Korean authorities in September 2022. The SEC (Securities and Exchange Commission) later filed a complaint in a New York court in February 2023. transmitted : “we claim that Terraform and Do Kwon Failed to Provide Full, Fair, and Factual Disclosure to the Public As required for a wide range of crypto-asset securities including LUNA and Terra USD […]. We claim that they do. fraud by repeating false and misleading statements to build confidence before inflicting devastating losses on investors.” Clearly, the American financial police accuse Terraform Labs and its leader not of sinking Terra Luna and TerraUSD in May 2022, but of repeatedly defrauding investors.

Do Kwon caught with fake documents from multiple countries

According to Montenegrin officials, Do Kwon has Forged documents from Costa Rica He plans to use it to go to Dubai. related to fake Belgian official documents It was also found on the young man. Interpol’s Seoul office confirmed the identity of the South Korean engineer. After complaints from Korea’s SEC, he was therefore charged with falsifying a document before the first-instance court in Podgorica. But South Korea is also trying to send him back to his country for trial.. Indeed, there is a multilateral extradition agreement between South Korea and Montenegro. For now, Do Kwon and finance director, custodyAccording to the court in Podgorica.

For French investors, this is a start of hope for understanding what really happened in May 2022. Do Kwon’s arrest is another example of the authorities’ determination to fight these financial crimes. The desire by the US to regulate cryptos is not unrelated to the Terraform thing.

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