A court in the US has charged Terraform Labs chief executive Do Kwon for engaging in a fraudulent scheme. On March 23, Do Kwon was arrested by the law enforcer in Montenegro for engaging in activities that contravened the law.
According to court submissions made by US Attorney Damian Williams, Do Kwon is charged with eight charges. William accuses Do Kwon of engaging in wire fraud, price manipulation, and other unlawful crypto activities.
Terraform Labs CEO Facing Charges
According to the prosecutors, Do Kwon is accused of promoting Terra digital assets using false information. The prosecutors revealed that Do Kwon had tampered with TerraClassicUSD stablecoin (USTC) market price readings.
Besides the prosecutors’ allegations, Montenegro’s minister of interior, Filip Adzic, had accused Do Kwon of presenting false documents at the Podgorica airport. Adzic team arrested Do Kwon with his counterparts for forging travel documents.
The two are charged with traveling from Costa Rica using false documents and are planning to embark on Dubai. Per the prosecutor’s findings, Do Kwon’s travel documents were cancelled by the South Korean ministry of foreign affairs last October.
The law enforcers at Podgorica have confiscated Do Kwon’s personal assets, including three laptops and five phones, for investigation purposes. Before the March 23 arrest, prosecutors in South Korea issued an arrest warrant in September 2022.
Following this, the Interpol team and the SEC submitted Do Kwon fraud charges to the US authority. The charges at the US court revealed that Do Kwon contributed to the fallout of the Terra Luna Classic token and the stablecoin USTC.