U.S. Attorney’s Office files charges against Kwon

A few hours after Terraform Labs CEO До Квон" href="https://noworries.media/biography/do-kvon/" data-bio-id="3665">Do Kwonwas detained in Montenegro, the New York federal prosecutor’s office filed charges against him. The official document contains eight counts — the agency accuses Kwon of conspiracy to commit fraud and market manipulation, securities fraud, and misleading investors.

«Through false statements and market manipulation, Kwon agreed with others to defraud purchasers of cryptocurrency issued by TFL by misleading them about the effectiveness of the algorithmic mechanism that allegedly ensured the stability of the UST price,» the prosecutor’s office said in a statement.

The lawsuit was filed in the Southern District of New York. A spokesperson for the prosecutor’s office told CoinDesk that the DOJ intends to seek Kwon’s extradition to the United States.

Earlier this February, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and its CEO with organizing a multi-billion dollar securities fraud.

As a reminder, yesterday, March 23, it was reported that Do Kwon was arrested in Montenegro. LUNA’s father was detained in the country’s capital when he tried to pass passport control at the airport using forged documents. Initially, the Montenegrin authorities were waiting for official confirmation of Kwon’s identity, but a few hours later, the South Korean media outlet Yonhap reported that he was the one detained in Podgorica.

The geography of the search for the Terra ecosystem founder covered almost half the globe. Earlier, Kwon was in Singapore, later Interpol announced that the fraudster was wanted in 195 countries, and only in December last year it became known that the CEO of Terraform Labs was hiding in Serbia. South Korea itself accuses Kwon of violating the country’s legislation on financial markets.