Do Kwon, the South Korean crypto entrepreneur behind the $40bn implosion of terraUSD and luna digital tokens last year, has been charged in the US with fraud, hours after he was arrested in Montenegro.
In a 12-page indictment revealed on Thursday, US prosecutors accused Kwon of defrauding crypto customers by “deceiving those individuals about aspects of the Terra blockchain, including its technology and the extent to which it had been adopted by users”.
Kwon, who faces eight criminal counts, including securities, commodities and wire fraud, repeated misleading claims in a TV interview in October 2019 and in a social media post the following year, prosecutors alleged.
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