Simon Ng According to investigators, Do Kwon, the founder of Terraform Labs, has allegedly withdrawn millions of dollars in cryptocurrency from an entity associated with his failed blockchain company. South Korean authorities are currently attempting to locate the digital assets that have reportedly been transferred since Kwon’s arrest in March, while he was in Montenegro.
Prosecutors Tracking Millions of Dollars in Tokens Linked to Terrausd and Kwon
A South Korean prosecutor working on the case has revealed that crypto entrepreneur Do Kwon has allegedly redirected tens of millions of dollars’ worth of cryptocurrency from an entity associated with the blockchain project he founded and managed before its collapse last year.
Dan Sunghan, the director of the financial crime investigation bureau at the Seoul Southern District Prosecutor’s Office, informed Bloomberg that Kwon likely personally moved or requested the movement of digital coins valued at $29 million following his detention earlier this year.
Kwon, who disappeared after the crash of Terraform’s stablecoin, terrausd, and cryptocurrency luna in May 2022, was arrested on March 23 this year while trying to leave Montenegro with a forged passport. He is currently facing trial in the small Balkan nation.
Dan stated that South Korean authorities are now attempting to locate the tokens that were withdrawn from a crypto wallet owned by Kwon’s Luna Foundation Guard (LFG), an entity established by Kwon to help maintain terrausd’s peg to the U.S. dollar.
Since the collapse of the Terraform ecosystem and Kwon’s disappearance, the fate of the crypto assets has been a matter of speculation. In addition to these funds, Kwon was previously accused by the U.S. securities regulator in February of diverting at least 10,000 BTC or more. Dan Sunghan also revealed that Kwon and his associates are believed to hold at least $13 million at Swiss crypto-focused lender Sygnum Bank.
“We assume that Do Kwon, or someone acting under his instructions, transferred the amount to another wallet, not to Sygnum, and cashed it out elsewhere,” explained the Korean prosecutor, highlighting that investigators have not yet located the funds.
The founder of Terraform Labs is facing crypto fraud charges in the U.S. and South Korea, with both countries seeking his extradition from Montenegro. While he pleaded not guilty to using forged travel documents and requested bail, Kwon may face trials in both South Korea and the United States for the $40 billion crash, potentially resulting in a lengthy prison sentence.
Dan, leading the Korean investigation, suggested that Kwon could be extradited to the U.S., where he would face trial, and subsequently have the sentence enforced in both South Korea and the U.S.
Do you believe Do Kwon has successfully redirected the cryptocurrency to a wallet under his control? Share your thoughts in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about crypto fraud
What is the accusation against Do Kwon?
Do Kwon is accused of diverting millions of dollars in cryptocurrency and is facing charges of crypto fraud in both the United States and South Korea.
What happened to Terraform Labs and its projects?
Terraform Labs, the blockchain company founded by Do Kwon, collapsed, leading to the crash of its stablecoin, terrausd, and cryptocurrency, luna. The fate of the projects remains uncertain.
Where is Do Kwon currently?
Do Kwon was arrested in Montenegro while attempting to leave the country with a forged passport. He is currently facing trial in Montenegro and may face extradition to the United States and South Korea.
What are the authorities trying to do now?
South Korean authorities are attempting to locate the digital assets that have allegedly been transferred by Do Kwon since his arrest. They are working to trace the tokens and recover any funds associated with the case.
What are the potential consequences for Do Kwon?
Do Kwon may face trials in both South Korea and the United States for the alleged crypto fraud, which could lead to a lengthy prison sentence if convicted in both countries.
Are the diverted funds and assets still missing?
Yes, investigators have not yet located the funds that were reportedly transferred by Do Kwon. The fate of the diverted cryptocurrency and other assets remains unknown at this time.
More about crypto fraud
- Bloomberg – Article providing details on Do Kwon moving $29 million worth of coins since his arrest.
- Terraform Labs – Official website of Terraform Labs, the blockchain company founded by Do Kwon.
- U.S. Securities and Exchange Commission – Official website of the U.S. Securities and Exchange Commission, which has alleged previous misconduct by Do Kwon.
- [South Korean Prosecutor’s Office](insert URL) – Official website of the South Korean Prosecutor’s Office, where updates on the case against Do Kwon may be found.
5 comments
Wow, this Do Kwon guy seems like a real troublemaker! Moving millions in crypto while facing charges? That’s some risky business!
Can you believe the audacity of Do Kwon? Allegedly diverting funds, disappearing, and now facing potential trials for crypto fraud. It’s a real rollercoaster ride in the world of cryptocurrencies!
The collapse of Terraform Labs and the disappearance of Do Kwon have left many investors wondering about the fate of their digital assets. Let’s hope the authorities can locate those tokens and bring justice to the situation.
It’s like a game of cat and mouse with Do Kwon. Will he manage to keep control of the cryptocurrency he allegedly diverted? The investigation and potential trials will surely shed more light on this intriguing case.
This story highlights the importance of transparency and accountability in the cryptocurrency world. Investors need to be cautious and do thorough due diligence before putting their money into any project. It’s a wild ride out there!