South Korean prosecutors have discovered a huge amount of illegal assets connected to Do Kwon, former CEO of Terraform Labs, who is now facing fraud charges from US prosecutors. At least 414.5 billion won (about $314.2 million) of Kwon's illegally acquired assets have been identified by the S. Korean authorities, out of which 91.4 billion won ($69 million) are directly linked to him.

Kwon allegedly converted the stolen funds into Bitcoin (BTC) using overseas crypto exchanges, making it difficult for authorities to reclaim it. Therefore, the South Korean authorities have asked Binance to halt any withdrawal requests associated with Kwon. Binance confirmed that they were cooperating and providing assistance as per needed.

To add to this, the South Korean prosecutors have seized properties belonging to Terraform Labs executives, including Kwon and those of his associates, to bring back the money embezzled from the Terra-Luna debacle. Some of these properties reportedly included foreign-registered vehicles, homes, and lands in various parts of South Korea.

The Terra-Luna crypto scheme, which was based on the algorithmic stablecoin Terra-USD classic (USTC), came crashing down in May 2022 despite enjoying immense popularity. An analysis of the chain data revealed that Kwon dumped over $450 million of UST on the open market in the 3 weeks prior to the event, which led to reduced liquidity and weakened the peg.

Despite the Interpol red notice and the arrest warrant issued against him, Kwon managed to evade the authorities for nearly a year before finally getting caught in Montenegro on March 23. He is now facing charges from both the South Korean and the US prosecutors.



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