News Update


Do Kwon, the ‘cryptocrash king’ of South Korea, has been imprisoned.

Do Kwon, the cryptocurrency executive responsible for the $40 billion (£31.3 billion) collapse of the terraUSD and Luna currencies, has been sentenced to four months in prison in Montenegro.

Mr. Kwon was convicted of falsifying government records.

He was apprehended in March while attempting to board a flight to Dubai at Podgorica Airport in the country’s capital, Podgorica.

Mr. Kwon is also facing charges in the United States and South Korea in connection with the collapse of the two digital coins last year.

Han Chang-joon, the former finance officer of Mr Kwon’s company Terraform Labs, was sentenced to four months in prison after being found guilty of the same allegations.

At their first court appearance in May, Mr Kwon and Mr Han pleaded not guilty.

The sentences will include the time Mr Kwon and Mr Han have already spent in custody since their arrest in March, according to a court statement.

They will also have eight days after obtaining written notification from the court to file an appeal.

Mr Kwon and his company Terraform Labs were charged with “orchestrating a multi-billion dollar crypto asset securities fraud” by US regulators in February.

“We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably Luna and TerraUSD,” said US Securities and Exchange Commission (SEC) chairman Gary Gensler in a statement.

A South Korean court issued arrest warrants for Mr Kwon and five other people involved in the case last year.

Prosecutors stated that they thought Terraform Labs, which is based in Singapore, breached capital market regulations.

Montenegro has no extradition arrangements with the United States or South Korea.

In May 2022, the collapse of the terraUSD stablecoin and its related Luna token shook cryptocurrency markets.


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