• Terra LUNA dropped significantly following news of the arrest of Terraform Labs’ founder Do Kwon.
• The coin was already on a downward trend due to the collapse of the Terra UST stablecoin project.
• The arrest was confirmed by Montenegro’s minister of interior Filip Adzic.

The price of Terra (LUNA) has taken a steep dive of around 7% in response to the news of the arrest of Do Kwon, the founder of Terraform Labs. At the time of writing, LUNA is trading at $1.31.

The arrest was confirmed by the Montenegro’s Minister of Interior Filip Adzic in a tweet, which said that Do Kwon was arrested at the Podgorica airport with falsified documents.

U PODGORICI UHAPŠEN JEDAN OD NAJTRAŽENIJIH SVJETSKIH BJEGUNACA

Crnogrska policija lišila je slobode lice za koje se sumnja da je jedan od najtraženijih bjegunaca, južnokorejski državljanin Do Kwon, suosnivač i izvršni direktor Terraform Labs sa sjedištem u Singapuru.
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— Filip Adzic (@filip_adzic) March 23, 2023

A translation of the tweet reads:

“Montenegrin police have taken into custody 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.”

Adzic mentioned that he was still awaiting official confirmation of Do Kwon’s identity.

Do Kown Wanted by Multiple Agencies

Do Kwon had become the target of investigations by numerous organizations around the world, and was even listed on Interpol’s red notice following the implosion of the TerraUSD (UST) stablecoin and the $40 billion Terra LUNA ecosystem last year.

The fallout from the collapse of the Terra LUNA project created shockwaves in the crypto market, resulting in a number of other crypto projects taking a hit.