Do Kwon Arrested in Montenegro With False Documents, Says Minister

The creator of the failed TerraUSD stablecoin, Do Kwon, has been arrested in Montenegro after being in hiding for several months. Do Kwon was known to have travelled considerably since the epic crash of TERRA LUNA and its algo stable TerraUSD.

The arrest was made in the airport of the country’s capital, Podgorica, as Do Kwon was apprehended carrying false documents. Montenegro’s interior minister, Filip Adzic, confirmed the arrest on Twitter and said that they were awaiting official confirmation of his identity.

In case this disaster somehow missed you, TerraUSD was an algorithmic stablecoin that aimed to maintain the price of $1 USD through a simple balance mechanism: 1 UST can always be redeemed for $1 worth of LUNA, and vice versa.

• If UST < $1, arbitrageurs can buy 1 UST, burn it and mint $1 worth of LUNA, and then sell that LUNA to earn a profit
• If UST > $1, arbitrageurs can buy $1 worth of LUNA, burn it and mint 1 UST, and then sell that UST to earn a profit