Do Kwon, the founder of Terraform Labs, was allegedly arrested in Montenegro this Thursday, according to Filip Adzic, the Montenegrin Minister of Interior’s tweet.
"Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder, and CEO of Singapore-based Terraform Labs."
Kwon is on Interpol’s red notice, and a target of multiple investigations after the TerraUSD (UST) stablecoin and its 40 billion USD ecosystem imploded last year. He was allegedly detained at Podgorica airport with forged documents, while his identity still awaits official confirmation. Yonhap news agency reported that the Korean National Police Agency confirmed that the suspect was in fact Kwon, based on the age, name, and nationality on his ID card.
After the announcement of Do Kwon's arrest, traders' reaction was rapid. Terra blockchain’s Luna Tokens fell by 8%, LUNA fell from 1.41 USD to 1.28 USD, while Luna Classic tokens dropped just 3.7%.
(Coinmarketcap graph showing the drop in the price of Terra Luna token.)
The arrest of Do Kwon in Montenegro caused a significant drop in the value of the Terra Luna tokens. However, many of the traders are still bullish about the price and are expecting it to rise after Do Kwon is brought to justice.