Do Kwon to Spend Next 30 Days in Detention in Montenegro
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Do Kwon to Spend Next 30 Days in Detention in Montenegro

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Created 2mo ago, last updated 2mo ago

The judge concluded that there are "concrete circumstances" indicating that Kwon could be a flight risk — especially considering he is a foreign citizen.

Do Kwon to Spend Next 30 Days in Detention in Montenegro

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A court in Montenegro has ordered Do Kwon to spend the next 30 days in detention.

But local media reports suggest the Terra co-founder is planning to appeal this decision.

The judge concluded that there are "concrete circumstances" indicating that Kwon could be a flight risk — especially considering he is a foreign citizen.

Several travel documents have been seized, some of which bore different names to their actual identities.

Another factor is the fact that Interpol had issued a red notice for his arrest.

Kwon was arrested at the airport alongside Han Chang Joon, who had served as Terraform's chief financial officer.

It's believed they were attempting to board a flight to Dubai using falsified Costa Rican travel documents — and they were initially arrested after a border official became suspicious.

Hours after he was captured, federal prosecutors in New York charged him with eight counts of fraud and market manipulation.

Kwon has been on the run for months after being charged criminally in his native South Korea and sued for defrauding investors by the U.S. Securities and Exchange Commission in February.

The TerraUSD stablecoin, or UST, had quickly become the third-largest stablecoin when it depegged in what amounted to a week-long, bank run-style collapse in May 2022. An algorithmic stablecoin, it used an arbitrage mechanism with a free-floating partner token, LUNA, to maintain its dollar peg.

The UST/LUNA ecosystem collapse destroyed an estimated $48 billion in value and was responsible for many of the other industry bankruptcies that worsened the crypto winter.

Kwon has been charged with conspiracy to defraud, two counts of commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.

At this point in proceedings, it's unclear whether he will be extradited to South Korea or the U.S.

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