The Justice Department charged South Korean crypto entrepreneur Do Kwon with fraud on Thursday as officials in Montenegro said they had arrested a man they believed to be the creator of the failed TerraUSD stablecoin. In an indictment unsealed in a New York federal court, Mr. Kwon was charged with eight criminal counts of fraud and is accused of conspiring with an unnamed U.S.-based investment firm to use trading strategies to alter the price of the stablecoin in May 2021. Mr. Kwon also lied in a television interview and on social media about the effectiveness of the algorithm ensuring the stability of TerraUSD, federal prosecutors said.