The founder of Terraform Labs, Do Kwon, hasreportedly been arrested in Montenegro, and is now facing fraud charges by US prosecutors in New York.
In a court filing signed by United States Attorney Damian Williams, Kwon is charged with eight separate counts, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.
The first charge, which is conspiracy to defraud, is based on Kwon’s alleged false and misleading statements made during a TV interview about the adoption of the Terra blockchain by users.
The prosecutors claim to have jurisdiction over Kwon as the interview was transmitted to various places, including the Southern District of New York. Four charges pertain to Kwon’s supposed involvement in trading strategies aimed at manipulating the market price of UST, which has since rebranded to the TerraClassicUSD stablecoin (USTC) and his purportedly misleading statements about the efficacy of USTC in maintaining its peg with the US dollar.
According to Montenegro-based news outlet Pobjeda, the state’s Prosecution Office may soon press charges against Kwon and Joon for using forged travel documents from Costa Rica, which were first discovered by Interpol.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://www.cryptocompare.com/email-updates/daily/2023/mar/24/
