Overview

• Terraform Labs founder Do Kwon pleaded not guilty after being arrested in Montenegro attempting to board a flight to Dubai with forged passports.
• Kwon was released on €400,000 bail while facing up to 5 years in prison for fraud charges in Montenegro as well as charges in South Korea and the US.
• Kwon's crypto TerraUSD "stablecoin" collapsed, wiping out $40 billion in value and leaving many investors with worthless digital assets.
• South Korea has frozen more than $150 million of Kwon's assets as authorities pursue charges for fraud, tax evasion, and violating capital markets laws.
• Kwon's case highlights the dangers of loosely-regulated cryptocurrencies and unstable "stablecoins."