The chief executive officer of Terraform Labs is now facing fraud allegations in South Korea, the Securities and Exchange Commission, and New York federal prosecutors.
Just hours after his purported arrest in Montenegro, Do Kwon, CEO of Terraform Labs, was hit with fraud charges by authorities in New York.
The 31-year-old entrepreneur has been charged with eight distinct charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to deceive and engage in market manipulation, according to a court document filed by United States Attorney Damian Williams.
The remaining four counts allege that Kwon made false or misleading statements about the stability of the TerraClassicUSD stablecoin (USTC) relative to the U.S. dollar and participated in trading strategies that manipulated the market price of USTC.
The submission comes after Filip Adzic, the interior minister of Montenegro, announced on March 23 that a person suspected of being the former “cryptocurrency king” was held with “falsified documents” at the airport in Podgorica.
According to a March 23 story by the Montenegrin daily Pobjeda, the Basic State Prosecution Office may soon file criminal charges against Kwon and Joon for using counterfeit Costa Rican travel passports, which Interpol allegedly found first.
Article 412, paragraph 2, of the Criminal Code of Montenegro, which carries a maximum term of three years in jail, is believed to apply to the offense.
Pobjeda stated that a baggage check uncovered fraudulent Belgian travel papers, three computers, and five mobile phones, which were confiscated.
On September 14, South Korean prosecutors issued an arrest warrant for Kwon, who faces many counts of fraud and violations of capital markets legislation in his native state.
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