We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.” The US District Court in Manhattan publicly released an indictment against Kwon with eight counts, including securities fraud and conspiracy, following his arrest.
Though Montenegro doesn’t have extradition treaties with the US or South Korea, the idea is still on the table.
Montenegrin authorities cited this as another reason for arresting Kwon.
The US Securities and Exchange Commission charged Kwon in February with failing to “provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD.
The pair were also found to have forged Belgian passports in their luggage, as well as computers sought by both the South Korean and US authorities.
Kwon and his associates marketed TerraUSD and Luna as stablecoins pegged to the US dollar, purportedly giving them more, well, stability.