Korean officials have pegged approximately 91.4 billion won, worth approximately $69 million, in digital assets directly to Do Kwon.
South Korean officials continue to question former Terraform Labs co-founder Kwon Do-Hyung, popularly known as Do Kwon, following his arrest early last month in Montenegro while trying to flee to Dubai. The collapse of Terra Luna and its algorithmic stablecoin UST caused a loss of more than $40 billion in the cryptocurrency market. As a result, the entire cryptocurrency industry capitulated and has never fully recovered since. Furthermore, regulations around the world have yet to be fully implemented to prevent such incidents at existing crypto companies.
Furthermore, the collapse of FTX and Alameda Research significantly tarnished the state of the crypto market.
South Korean Officials on Terra Luna’s Do Kwon
According to recent court revelations, Do Kwon had no solid assets that could be seized in South Korea. However, South Korean officials have identified some 414.5 billion won worth approximately $314.2 million in illicit assets associated with Do Kwon and his associates. Interestingly, Korean officials have pegged approximately 91.4 billion won, worth approximately $69 million, in digital assets directly to Do Kwon.
Kwon reportedly used offshore cryptocurrency exchanges to convert Terra Luna’s profits into Bitcoin. As a result, Korean officials requested Binance, the largest centralized crypto exchange by daily traded volume, to stop any withdrawals related to Kwon or his associates.
Meanwhile, Binance has confirmed that it is working closely with Korean prosecutors and offering them any necessary assistance.
“We provided the Korean LE authorities with the requested assistance. Since we cannot comment on the ongoing LE investigations, for any further comments, please contact prosecutors,” Binance noted.
according to a report According to a South Korean media outlet, the illicit profits of Terraform Labs co-founder Shin Hyun-Seong and former CEO Chai amounted to around 154.1 billion won. It was reported that the remaining 7 Terra employees have siphoned off a total of 169 billion won from investors.
End of the game
Investors in Terraforms Labs were forced to reckon with the Luna and UST collapse and forced liquidation that may never recover. The Terra Luna project transformed into Terra Classic LUNC, which was trading around $0.0001251 on Friday. According to market data provided by Binance-backed Coinmarketcap, Terra Classic LUNC has a reported market capitalization of approximately $737,726,064 and a 24-hour trading volume of around $116,073,937.
However, community-owned Terra Classic LUNC has distanced itself from Do Kwon, who is wanted by several jurisdictions, including Singapore and the United States, on fraud charges.
It is currently unclear if Do Kwon will be imprisoned in South Korea or in the United States. However, his arrest and prosecution will be a stern warning to other crypto projects looking to defraud investors.
next
Let’s talk about crypto, Metaverse, NFT, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. We all WIN!
