The collapse of the Korean do Kwon TeraUSD stablecoin and Luna token cost investors $40 billion. A court in Montenegro sentenced the “king of cryptocurrencies” to … 4 months in prison.
Do Kwon was found guilty of falsifying documents and sentenced to … 4 (!) months in prison. BBC. After his company’s collapse, investors lost more than $40 billion.
In September 2022, a warrant for Do Kwon’s arrest was issued by South Korea, and his company collapsed. The collapse of TeraUSD stablecoin and its associated Luna token rocked the cryptocurrency markets in May 2022.
He escaped from Singapore, where his company was headquartered, to Kwon and reached Europe via Dubai. He was detained in Montenegro in March. Importantly, the conviction in Montenegro does not solve the problems of the “King of Cryptocurrencies”, as he is still being prosecuted by the South Korean and US judiciary. Montenegro does not have extradition treaties with the United States or South Korea.
The verdict may come as a shock, but on the other hand, it shouldn’t come as a surprise. We wrote about the change of power in Montenegro and the connections between politicians and the creator of Luna in the article: “Cryptocurrencies, accusations and successful elections. Montenegro changed power”.
J.M
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