South Korean prosecutors are pursuing the extradition of Do Kwon, the founder of Terra coin. The news comes after Do Kwon was apprehended in Montenegro yesterday, as reported by BlockBeats.

The cryptocurrency entrepreneur Do Kwon — who designed a pair of digital currencies that failed spectacularly last year, triggering a market meltdown — was charged with fraud by federal prosecutors in New York on Thursday, hours after the authorities in Montenegro arrested him as he prepared to board a flight.

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Terra (LUNA) price tumbled 8% after reports on Terra co-founder Do Kwon’s arrest reached the Terra community. Surprisingly, Terra Classic (LUNC) price also fell steeply by 4% despite Do Kwon and the community separating after the Terra-LUNA crisis.

Authorities in Montenegro – a Balkan country – have arrested a man who could potentially be Terra’s founder – Do Kwon. The news was announced by the interior minister of Montenegro – Filip Adzic – on his social media channel. In a translated Tweet, the minister stated that one of the world’s most wanted fugitives was arrested in Podgorica.

The founder of Terraform Labs, Do Kwon, has been arrested in Montenegro, according to a tweet by the country's minister of interior Filip Adzic.

South Korean prosecutors will expand cooperation with overseas legal agencies and counterparts to facilitate the arrest and extradition of Kwon Do-hyung, a South Korean national known as Do Kwon. He faces fraud charges in South Korea related to the now collapsed Terra-Luna stablecoin, a project developed by his Singapore-based Terraform Labs.

The U.S. Justice Department has opened a probe into the collapse of Do Kwon’s TerraUSD stablecoin, according to the Wall Street Journal (WSJ).

Former employees of Terraform Labs, the company behind the Terra-Luna stablecoin that collapsed in May last year, are being questioned by the Federal Bureau of Investigation and prosecutors from the Southern District of New York, the Wall Street Journal reported citing unnamed sources familiar with the matter. Terra-Luna founder Do Kwon, a South Korean, is the subject of an Interpol Red Notice and is believed to be living in Serbia. The SEC alleged that Do Kwon, whose full name is Kwon Do-hyung, and Terraform defrauded investors by saying that Chai used Terra blockchain to process payments, to add value to the Luna cryptocurrency. (forkast)

Given SVB’s direct involvement in destabilizing USDC prices, CZ blamed banks for increasing the risks of stablecoins.