Kwon's Arrest in Montenegro Marks Dramatic Fall for Disgraced Crypto Founder After TerraUSD Collapse
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Kwon's downfall began in Montenegro when he was detained trying to board a private jet to Dubai, based on an international arrest warrant related to the collapse of TerraUSD and Luna tokens.
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TerraUSD, promoted by Kwon as an innovative algorithmic stablecoin, lost its peg and plummeted in value along with Luna in May 2022, causing about $40 billion in losses.
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Kwon is accused of deceiving investors amid suspicions he secretly amassed vast crypto wealth, facing possible severe punishment in South Korea if found guilty.
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The collapse sparked a political scandal in Montenegro tied to a local politician's past investment in Luna and relations with Kwon.
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The TerraUSD crash had global repercussions, from individual investor losses worldwide to a reported suicide in Taiwan related to losses of $2 million in Luna.