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Terra Network’s Native Tokens Drop as Founder Do Kwon is Finally Caught

Terra Network’s Native Tokens Drop as Founder Do Kwon is Finally Caught

The native tokens of the Terra network experienced a slight drop in value after reports emerged that its founder, Do Kwon, was arrested in Montenegro on March 23.

Sources indicate that Kwon was taken into custody in the Balkan nation, according to South Korean officials who confirmed this based on photo evidence.

Interpol was on the lookout for Kwon due to his involvement in the collapse of the Terra ecosystem in May 2022. After evading authorities for almost a year, Kwon was finally arrested by Montenegrin police at the Podgorica airport, as per the country’s Interior Minister, Filip Adzic.

While the South Korean police have verified the arrested person’s identity based on photo data, name, nationality, and age, they are still waiting for fingerprint data from their Montenegrin counterparts to confirm the person’s identity. This is because the individual apprehended had allegedly been carrying falsified documents.

The Terra ecosystem’s implosion in May 2022 led to the collapse of the algorithmic stablecoin TerraUSD (USTC) and its companion token LUNA (LUNC). The event wiped out over $60 billion in investors’ wealth, triggering the failure of several high-profile crypto firms, including Three Arrows Capital. The price of Bitcoin also fell from $40,000 to $26,000 in just two weeks.

READ MORE: Bitcoin Provides Safe Harbor for Investors – InvestAnswers

In September 2022, South Korean officials issued an arrest warrant for Kwon, and he was later added to Interpol’s red notice list, making him a wanted man in 195 countries worldwide. Kwon is also facing charges in the United States for selling unregistered securities and misleading investors about TerraUSD stablecoin.

Korean investigators traveled to Serbia in February in an attempt to locate Kwon. However, he may have attempted to flee Serbia by entering Montenegro, which is south of Serbia and shares borders with the nation. Following the news of Kwon’s apprehension, the price of LUNA fell from $1.40 to $1.31, posting a 3.4% loss over the past day, according to CoinMarketCap data.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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