Montenegro

Terra’s branding at MLB opener draws attention from spectators

An attendee shared an image of a Terra banner with the slogan “a decentralized economy needs decentralized money,” prominently displayed during Major League Baseball’s opening day.

As baseball enthusiasts flocked to Nationals Park in Washington D.C for the opening day of the Major League Baseball (MLB) season, the appearance of Terra — the crypto ecosystem that collapsed in May 2022 — didn’t go unnoticed by attendees.

A Twitter user who attended The Washington Nationals’ home opener against the Atlanta Braves on March 30 shared an image of Terra prominently displayed on a banner with the slogan, “a decentralized economy needs decentralized money.”

“Sounds like a solid company. Will check out,” the user commented on the prominent placement of Terra at the stadium.

Another Twitter user said the Terra Club — a VIP pre-game venue experience — is behind the home plate at Nationals Park, and “a big sign in left center” promoting Terra.

The partnership between Terra and The Washington Nationals’ came into effect in February 2022, just months before Terra’s collapse.

The Terra community committed $38.2 million in TerraUSD (UST) over five years to secure the deal.

Related: ‘Wild’ — SEC going after Terra sparks responses from crypto lawyers

Terra’s founder, Do Kwon, proposed the partnership through the community’s governance platform. Kwon is currently in police custody in Montenegro, and will reportedly face harsh conditions in the penal system, according to an unnamed criminal defense lawyer, in a March 29 Protos report.

It was reported that the conditions at Montenegro’s jails and prisons “haven’t changed” from those described in a 2020 human rights report by the United States State Department.

The report cited a 2015 case in which prison officers were convicted of torturing and “inflicting grievous bodily harm” on 11 inmates.

Cointelegraph reached out to the Washington Nationals for comment but did not receive a response by the time of publication.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Do Kwon faces fraud charges from US prosecutors hours after arrest

The Terraform Labs CEO is now facing fraud charges in South Korea, the Securities and Exchange Commission and federal prosecutors in New York.

Terraform Labs CEO Do Kwon has been charged with fraud by United States prosecutors in New York, just hours after he was reportedly arrested in Montenegro.

In a court filing signed by United States Attorney Damian Williams, the 31-year-old entrepreneur has been charged with eight separate counts, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation.

Under the first charge, conspiracy to defraud, the U.S. prosecutors claim to have jurisdiction over Kwon because he made a series of false and misleading statements during a TV interview that was transmitted to — among other places — the Southern District of New York, about the extent to which the Terra blockchain had been adopted by users.

The remaining four charges are related to a series of purportedly misleading statements about the effectiveness of the TerraClassicUSD stablecoin (USTC) to keep its peg with the U.S. dollar, as well as Kwon’s alleged involvement in trading strategies that were designed to alter the market price of USTC.

The filing comes as Filip Adzic, the minister of interior of Montenegro, reported on March 23 that an individual suspected of being the former “cryptocurrency king” was detained at the Podgorica airport with “falsified documents.”

The suspect, believed to be Kwon, was detained in Podgorica Airport with fellow business partner Hon Chang Joon while trying to fly to Dubai, Adzic stated.

In a follow-up tweet, the Montenegro Interior Ministry reported that Kwon used forged travel documents from Costa Rica.

Criminal charges in Montenegro

According to a report by Montenegro-based newspaper Pobjeda on March 23, the Basic State Prosecution Office may soon press criminal charges against Kwon and Joon for using forged travel documents from Costa Rica, which they say was first discovered by Interpol.

The criminal offense is understood to fall under Article 412 paragraph 2 of the Criminal Code of Montenegro, which carries a maximum imprisonment sentence of three years.

A luggage search also found forged Belgium travel documents along with three laptops and five mobile phones, which were taken from them, Pobjeda reported.

Related: Terra co-founder Do Kwon says he’s not ‘on the run’

South Korean prosecutors issued an arrest warrant against Kwon on Sept. 14, who faces a series of fraud charges and breaches of capital markets law in his home state. Also, Interpol on Sept. 26 issued a red notice listing for his arrest, and the United States Securities Exchange Commission filed fraud charges of its own on Feb. 16.

The charges laid against him are in relation to his alleged role in the collapse of the $40 billion Terra Luna Classic (LUNC) token and TerraClassicUSD stablecoin (USTC) last May.

Since the collapse, Kwon has reportedly moved between Singapore, Dubai and Serbia.

The South Korean foreign ministry officially canceled Kwon’s passport on Oct. 20 after he failed to surrender his passport following an October 6 order.

Magazine: SEC sues Do Kwon, Paxos ready to litigate, SBF’s VPN: Hodler’s Digest, Feb. 12-18

Breaking: Terraform Labs co-founder Do Kwon reportedly arrested in Montenegro

The former blockchain executive is wanted by Interpol for his role in the $40-billion collapse of the Terra ecosystem in May 2022.

According to a post from Filip Adzic, minister of the interior of Montenegro, an individual suspected of being Terra co-founder Do Kwon has been arrested within the territory of the Balkan nation on March 23. Since the announcement was first made, local news outlet Vijesti has confirmed that the Twitter account that made the announcement is from the minister of the interior of Montenegro and that the individual arrested was a South Korean national. 

The same day, South Korean local news outlet Yonhap News Agency said authorities confirmed based on “photo data,” alongside name, nationality and age of an identification card that the arrested individual was the same person as Terraform Labs’ CEO, Do Kwon. The former blockchain executive’s aide, Han Mo, was also reportedly arrested with him in Podgorica. However, the National Police Agency of South Korea stated it was still waiting for “fingerprint information” from Montenegrin authorities to fully verify that the arrested individuals are in fact Kwon and Mo. South Korean prosecutors previously revoked Kwon’s passports in October 2022. 

“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.”

As told by Adzic, an individual suspected of being the former “cryptocurrency king” was detained at the Podgorica airport with “falsified documents,” and authorities are awaiting official confirmation of identity. Montenegro is geographically south of Serbia and shares borders with the country. Since December 2022, South Korean prosecutors have alleged that Kwon was hiding in Serbia, where no extradition agreement exists with South Korea. On Sept. 26, 2022, an Interpol red notice was issued for the arrest of Kwon for his alleged role in the collapse of the $40-billion Luna Classic (LUNC) and TerraUSD (USTC) ecosystem in May 2022. He is also wanted by regulatory authorities in South Korea, Singapore and the United States. 

Montenegro reportedly does not have an extradition agreement with either Singapore or South Korea. However, it does have an old extradition treaty with the U.S. and has complied with extradition requests for U.S. nationals in the past. The country also communicates with Interpol on extradition matters. Kwon has spent substantial time in the U.S. in the past, but it is not clear if he is a U.S. citizen or permanent resident, or committed criminal acts against U.S. nationals, for potential extradition proceedings.

On Feb. 16, 2023, the U.S. Securities and Exchange Commission charged Kwon with “orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.” Since March, the U.S. Department of Justice has also been probing Kwon’s role in the collapse of the Terra ecosystem. However, no criminal complaints have been filed against Kwon within the territory of the United States.