TerraLab Co-founder Do Kwon Established a New Company in Serbia Amid Interpol Red Alert

The Co-founder of the collapsed TerraLab, Do Kwon was reported to have established a new company in Serbia despite a global search and Interpol red alert.

The company which was filed as a consultancy firm was registered for less than $1.

According to a report on DLNews, Kwon opened a company called “Codokoj22 d.o.o. Beograd” in October 2022 for 100 Serbian dinars ($0.92). The official record also shows that he is the sole owner of the company while Han Chang-Joon, the former CEO of Chai Corporation, was reportedly listed as a co-director.

It could be recalled Do Kwon had been in hiding since the dramatic collapse of his taunted company, Terraform Lab, where more than $40 billion belonging to thousands of retail and institutional investors was lost. 

However, the South Korean-born was arrested last week in Montenegro after being charged with fraud in the United States and declared wanted by the South Korean authorities, Investors King earlier reported. 

The collapse of Terraform Lab took the crypto industry in a big shock as two popular products of the company, Luna and UST stablecoin crashed, whipping more than $40 billion off the crypto market cap in a matter of days. 

Before the crash, Luna was trading near $100 and fell to $0 while the company’s stablecoin UST which is supposed to be pegged to dollars fell below the $1 mark. 

After the crash, investigations by the US Securities and Exchange Commission (SEC) indicted Do Kwon for complicity including the withdrawal of $80 million before the crash. The U.S. SEC also alleged that Kwon transferred over 10,000 BTC to a cold wallet and cashed out about $100 million via a Swiss Bank.

Meanwhile, both the United States and South Korea have sought his extradition for charges filed against him while in hiding. However, at the moment, authorities in Montenegro have charged him with forgery and could appear in court any time soon.