Do Kwon, a well-known figure in the world of cryptocurrency, has been arrested in Montenegro several months after the collapse of TerraUSD, a project he was involved in. TerraUSD was a stablecoin, meaning its value was pegged to the US dollar, and it was launched as part of the Terra network, which Kwon co-founded.
The collapse of TerraUSD in late 2022 led to losses of around $40 billion for investors. The reasons behind the collapse are not entirely clear, but it is believed to have been caused by issues with the stability of the coin’s peg to the US dollar.
Kwon had been on the run since the collapse of TerraUSD, and was eventually apprehended by Montenegrin authorities. He is now facing extradition to the United States, where he is likely to face charges related to his involvement in TerraUSD.
Kwon has been involved in several other cryptocurrency projects in addition to TerraUSD. Prior to co-founding Terra, he worked for a number of years as a software engineer, and later as an entrepreneur. He is considered to be a prominent figure in the cryptocurrency community, and his arrest has sent shockwaves through the industry.
The collapse of TerraUSD has been one of the biggest scandals in the world of cryptocurrency in recent years, and has raised questions about the regulation of stablecoins and the wider cryptocurrency industry as a whole. Many experts believe that greater oversight and regulation is needed to prevent similar incidents from happening in the future.
Similar to the collapse of FTX and Sam Bankman Fried’s reassurance to customers everything was completely business as usual Do Kwon not only reassured Luna clients but also abused those to question their security, similar to SBF and co.
