Montenegrin prosecutors have accused Do Kwon of fabricating and using false documents, potentially delaying judgment in the Terra Collapse (LUNA) case that cost investors more than $40 billion. At the same time, Do Kwon’s lawyers rejected fraud charges brought by the United States SEC, and Belgrade police seized the apartment where the founder of Terraform Labs was hiding.
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Do Kwon prosecuted in Montenegro
Do Kwon, real name Kwon Do-Hyung, was arrested at Podgorica airport (Montenegro) on March 23. The founder of Terraform Labs was thus placed in the jails of the country alongside its CFO Hon Chang-Joonpending a possible judgment on the use of falsified identity documents.
Eventually, while South Korea and the United States both requested Do Kwon’s extradition, the latter was indeed accused by the prosecutors of Montenegro of having fabricated and used false identity documents in an attempt to fly to Dubai alongside his sidekick.
These lawsuits, which could lead to a sentence ranging from 3 months to 5 years in prisonwill thus potentially delay the judgment of the 2 men on the substantive case, namely the collapse of Terra (LUNA).
Indeed, the clues pointing to a planned destruction of Terra accumulate. Already last December, @FatManTerra highlighted this hypothesis by showing that Terraform Labs had dumped hundreds of millions of dollars of UST just days before the fall of the algorithmic stablecoin.
And lately, we learned via local media KBS that Do Kwon had transferred the equivalent of 7 million dollars to his lawyers also just before the start of the collapse. Elements which should considerably weigh down the file of the person concerned, who will then have to assume the approximately 40 billion dollars gone up in smoke following these actions.
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SEC charges dismissed and real estate seized
Bloomberg revealed that Do Kwon’s lawyers had recently opposed Securities and Exchange Commission lawsuits (SEC) accusing Terraform Labs of securities fraud. “ [La loi américaine interdit aux régulateurs] to use federal securities law to assert jurisdiction over digital assets in this case”they added.
This SEC initiative dates from last February, where it targeted, among other things, the LUNA token and the UST as well as mTokens, which effectively allowed investors to be exposed to American financial securities. In their motion, Do Kwon’s lawyers added that this was a abusive attempt by the SEC to regulate cryptocurrencies through laws considered obsolete.
At the same time, a Serbian prosecutor recently revealed that the country’s police had seized a luxury apartment in Belgrade worth more than 2 million euroswhere Do Kwon and his financial director would have holed up during their escape.
A survey has also been launched for this purpose, aimed at determining if the duplex had been purchased via the funds potentially stolen from investors.
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Sources: DefiLlama, Bloomberg
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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