Crypto villain Do Kwon arrested in Montenegro The Register

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Fugitive crypto villain Do Kwon has been imprisoned in Montenegro for falsifying documents.

Kwon was a co-founder of Terraform Labs, a crypto company that was trying to create a “stablecoin” pegged to the value of the US dollar. The program took a pear shape in May 2022, leaving a $40 billion crater in investors’ holdings.

Kwon evaded responsibility for the mess and attempted to physically evade authorities, who believed he had told lies to lure investors and therefore wanted a word on his actions. After disappearing and denying he was on the run, Kwon eventually emerged in Montenegro.

Kwon reportedly had a long association with a Montenegrin politician

Montenegro has a crisp coastline and dramatic mountains, but Kwon may not have gone there for the scenery: it’s alleged he had a long association with a local politician and may even have financed their campaigns, and therefore felt that local justice could smile on his activities. Or at least look away.

In March 2023, Kwon put this proposition to the test by trying to leave the European nation. As he attempted to board a plane bound for Dubai, authorities found no trace of his entry into Montenegro. The Costa Rican and Belgian passports he carried also aroused suspicion and led to his arrest.

On Monday, these questionable documents earned Kwon four months in prison.

The Podgorica Magistrate’s Court announced the sentencing on Monday, adding that Kwon and another unnamed Korean citizen have already spent nearly three months inside and that time will be counted against their sentence.

News of Kwon’s confinement will be cold comfort to investors, but will interest authorities around the world, many of whom want him to explain his actions.

Regulators have waited nearly a year for his story: Kwon fled South Korea for Singapore in the days before Terraform Labs crashed. The island nation sued him, South Korea issued an arrest warrant, and the United States Securities and Exchange Commission charged him with fraud.

Kwon will be out of Montenegro’s penal system in a few weeks. Grab some popcorn, dear reader, as we await news of the next jurisdiction that will attempt to catch it.

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