The collapse of Terra was traumatizing for the crypto market and a contagion effect set in right after it happened. Crypto has prevailed and became stronger mastering the big crisis of 2022. The founder and CEO of Terraform Labs went into hiding and soon it became clear that he wouldn’t take any responsibility. Yesterday, the news broke that Do Kwon was arrested and many investors as well as community members are confident that justice will be finally served. 

Where was Do Kwon arrested and what will be the next chapter of his story?

Arrest in Montenegro

Do Kwon was arrested yesterday in Montenegro. This was confirmed by nobody less than Home Secretary Filip Adzic. Do Kwon was travelling using forged passports and was identified through his picture.

South Korea issued an arrest warrant in September 2022 and since that day Do Kwon was on the run. According to several reports, he fled from Singapore to Dubai while other reports have claimed that he resided in Serbia. Based on the arrest warrant from South Korea, Interpol issued a red notice which is itself not a warrant but rather a request to find and arrest a fugitive.

Each country can decide whether it follows the request or not. It appears that Montenegro plans to honour the request. The question remains when Do Kwon will be deported and to which country he will be brought.

The last chapter of Do Kwon’s story

Do Kwon is not only wanted in South Korea but also by the U.S. Securities and Exchange Commission (SEC). The SEC filed a complaint in the Southern District of New York last month. If Do Kwon should face the trial that awaits him in New York, this won’t be easy for him.

It remains to be seen whether he will be brought to the U.S. or South Korea first. In any case, this is the start of the last chapter in Do Kwon’s story and also an important chapter in the story of Terra. It is unlikely that investors will be made whole after $40 billion were lost. At least they can get some closure, knowing that Do Kwon has to take responsibility for his actions.

While being a fugitive, the Ex-CEO of Terraform Labs mocked his critics and the authorities via Twitter. It looks like he won’t get the last laugh and arrogance will most certainly not help him where he is going.