• Do Kwon, the co-founder of TerraForm Labs, and Hong Chang-jun have been detained in Montenegro for document forgery charges.
• The US and South Korea both requested extradition but Do Kwon could be held for longer due to the forgery charges.
• Terra Luna Classic (LUNC) and Terra (LUNA) have dropped 10% in the last seven days, while the stablecoin UST crashed from its original value.
Do Kwon’s Arrest
Montenegrin authorities recently charged Do Kwon, co-founder of TerraForm Labs, with multiple document forgeries. When trying to board a private jet to Dubai, local police detained him and his business partner Hong Chang-jun at Podgorica Airport. The US and South Korea requested extradition; however, Montenegrin law enforcement asked for an extension of detention due to these latest charges. This could mean that Do Kwon will stay in Montenegro’s notorious prison system longer than expected.
TerraCrypto Failures
The Terra crypto project was created by Do Kwon to overthrow Ethereum (ETH). However, it has not gone as planned with both Terra Luna Classic (LUNC) and Terra (LUNA) having dropped 10% in the last seven days. Furthermore, the stablecoin UST has crashed from its original value after being traded at just 2 cents on the dollar.
Suspicion of Foreknowledge
Korean prosecutors uncovered a suspicious $7 million funding wired by Do Kwon right before the algorithmic stablecoin UST crashed – raising further suspicion that he had foreknowledge of the impending collapse of his own cryptocurrency project.
Human Rights Concerns
The conditions in Montenegro’s prisons are concerning according to human rights activists who have called them out multiple times. In addition to this extended detention period caused by new legal proceedings against him, Do Kwon is likely to face even worse conditions than previously expected since he is now being held in one of Podgorica’s worst prisons instead of receiving luxury treatment as originally thought when first captured by local police forces at Podgorica Airport.
Conclusion
Do Kwan faces a difficult future as he awaits his fate within Montenegro’s prison system during ongoing legal proceedings against him regarding document forgery charges pressed by local law enforcement agencies . His ambitious attempt at creating a successful crypto currency project through Terra has proven unsuccessful so far with both Luna Classic (LUNC) and Terra (LUNA) dropping significantly over the past weeks while his own stable coin UST collapsed dramatically shortly before his arrest – leading many people to question whether he had prior knowledge of its imminent failure when wiring millions into a Korean law firm shortly before its crash