Do Kwon, the founder of the now-defunct Terra USD (UST) and Luna (LUNA) cryptocurrencies, could face up to five years in a Montenegrin prison before being extradited to South Korea or the United States.

Kwon is currently under quarantine for COVID-19 and will soon be sharing a cell with other inmates in a Montenegrin prison, according to a report by a local lawyer.

Montenegro Prisons a 'Hell On Earth'...

However, the prisons in Montenegro are notoriously overcrowded, and inmates are often subjected to aggressive treatment by prison staff.

Amnesty International has raised concerns about the conditions and rights of detainees in Montenegrin prisons, including the lack of independent investigations into ill-treatment.

The cell Kwon will be occupying is only 8 square meters and is usually filled with between 10 and 11 people, leaving no room for a bed.

Inmates are only allowed a 30-minute walk in the prison yard each day and can only purchase limited items like cigarettes and coffee.

Montenegro now the first of 3 nations that will need to take turns locking up Kwon...

Kwon's initial arrest in Montenegro was due to presenting false documents, is a crime that carries a penalty of up to five years.

While both South Korea and the United States have requested Kwon's extradition, Montenegro has yet to make a decision.

If Montenegro decides to pursue it, this could be the first of three nations aiming for him to serve time in their prisons.

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Author: Mark Pippen
London News Desk 
Breaking Crypto News 

Officials in Montenegro have arrested Luna founder Do Kwan. 

First detained when officials at the Podgorica airport noticed his false documents, the man in custody spent hours denying he was the South Korean fugitive, until South Korean officials provided fingerprint records that were used to confirm his identity. 

"The former 'cryptocurrency king' who is behind losses of more than 40 billion dollars, was detained at the Podgorica airport with falsified documents, and the same is claimed by South Korea, the USA and Singapore. We are waiting for official confirmation of identity" Tweeted Montenegro's Minister of Interior.

Then minutes before this story was published, Interpol confirmed to us that a positive ID has been made - the person in custody IS Do Kwon.

Along with him another man stating he was his 'assistant' going by the name 'Han' was also arrested, there is no word on the actual identity of this person. 

What's Next for the Luna Founder?

While charged with crimes in both the US and South Korea, US prosecutors have said that they will seek Kwon’s extradition to the United States where he is charged with 8 federal violations including securities fraud, wire fraud, commodities fraud, conspiracy, and market manipulation.

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News

Sources have informed us of a pending international police (Interpol) global 'red alert' to be issued shortly for the search and capture of Do Kwon, the co-founder of the failed cryptocurrencies terraUSD (UST) and Luna (LUNA), whose whereabouts are currently unknown after moving from Singapore, where he was evading South Korean justice.  

The Interpol security forces include a total of 195 member countries with cooperating law enforcement officials. 

Kwon is indicted in South Korea and possibly wanted internationally for various crimes, including investor fraud, money laundering and tax evasion and evade taxes... 

To the crypto world, he is responsible for a massive loss of investor funds, considered the event that started this year's bear market.

At the time of publishing, Do Kwon's profile has not yet been listed on the official Interpol wanted page. However, if accurate, he would become part of a list of 7,152 red alerts that are currently active.

His most recent statement showed he was still struggling to accept reality...

9 days ago, he denied that he was on the run and that he was at the order of "any government agency" that wants to communicate with him. "We are very cooperative and we have nothing to hide," Kwon said.

South Korean officials rebutted the statement, saying he 'clearly' is evading authorities.

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News

A crypto investor was arrested today in Seoul, South Korea for trespassing at the residence of Do Kwon, the co-founder and CEO of Terraform Labs.

The suspect, whose identity has been concealed, allegedly entered the apartment complex in eastern Seoul last week and rang the doorbell when Kwon's wife was at home, looking for him.

Kwon is at the heart of the Terra cryptocurrency's and Luna's digital coin counterparts' huge downfall. Luna's price has dropped to under 1cent, having traded for over $80 at the beginning of the month, while their stablecoin built to always be worth $1 continues to massively miss the mark at $0.09.

"I've lost between 2 and 3 billion won (US$2.3 million)" the suspect told reporters during an inquiry at Seongdong Police Station.

The suspect, who runs an online broadcasting channel, alleges that people have committed suicide as a result of the stablecoins' decline.

Pleading with Kwon to take responsibility for the current catastrophe, the suspect said Kwon should apologize to the over 200,000 investors who have lost money.

Kwon's wife requested police protection after his visit, according to officials.

Terraform Labs says they are working on ways to keep its Terra blockchain and ecosystem running despite the collapse of its cryptocurrency.

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News

The Luna Foundation bought an additional 4,130 Bitcoin, raising the foundation's total holdings to 39,897.98 BTC, as they continue to pursue their goal of purchasing $10 billion worth of Bitcoin and becoming the second-largest holder of BTC behind Satoshi Nakamoto.

The Luna Foundation still needs to purchase another $8.2 billion in Bitcoin to reach its goal, but their holdings are already quite impressive.  

In addition to their stash of Bitcoin, the foundation also holds $563 million in USDC and USDT stablecoins, and earlier this week announced a planned $100 million purchase of avalanche (AVAX) to continue to diversify their reserves.

Market Reaction... Missing.

However, the Luna Foundation's purchase of 4,130 Bitcoin had no effect on the cryptocurrency markets.

The reason is most likely a deal conducted outside of exchanges, which allows them to avoid slippage (raising the price on themselves), which also means not filling any sell orders - in short, everything is done in such a way that it is impossible to move the price, except for how other traders react to the news.

 At the time of writing, BTC is hovering around the $43k support level.

Where Do We Go From Here?

Indicators are now in a neutral zone, none are screaming 'buy' or 'sell' at the moment. 

This could result in lower prices before another rally, but if it manages to hold at this level or higher for the next few days that stability could attract buyers, once again building up momentum.  I'm watching for it to break the $48k resistance zone and open the door to $50k or even higher fairly soon.

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Author: Adam Lee 
Asia News Desk | Breaking Crypto News