Do Kwon Moved $29 Million Worth of Coins Since Arrest, Prosecutor Says

Founder of Terraform Labs, Do Kwon, has withdrawn millions of dollars successful crypto from an entity linked to his failed blockchain firm, investigators claim. South Korean authorities are present trying to find the integer assets that person been allegedly transferred since his apprehension successful Montenegro successful March.

Prosecutors Try to Trace Tokens for Millions of Dollars Tied to Terrausd and Kwon

Crypto entrepreneur Do Kwon has reportedly funneled tens of millions of dollars’ worthy of cryptocurrency retired of an entity linked to the blockchain task helium founded and managed earlier its illness past year, according to a South Korean authoritative moving connected the case.

Dan Sunghan, manager of the fiscal transgression probe bureau astatine the Seoul Southern District Prosecutor’s Office, told Bloomberg that the integer coins valued astatine $29 cardinal were apt moved by Kwon personally, oregon astatine his request, aft helium was detained this spring.

Kwon, who vanished aft the clang of Terraform’s stablecoin terrausd and cryptocurrency luna successful May 2022, was arrested connected March 23, this year, portion trying to permission Montenegro connected a fake passport. He is presently facing trial successful the tiny Balkan nation.

Dan revealed that South Korean authorities are present trying to find the tokens, which were withdrawn from a crypto wallet belonging to Kwon’s Luna Foundation Guard (LFG), an entity established by Kwon to assistance support terrausd’s peg to the U.S. dollar.

The destiny of the crypto assets has been the taxable of speculations since the illness of the Terraform ecosystem and Kwon’s disappearance. Besides these funds, helium had antecedently diverted different 10,000 BTC oregon more, arsenic alleged by the U.S. securities regulator successful February. Kwon and his associates are besides believed to clasp astatine slightest $13 cardinal astatine Swiss crypto-focused lender Sygnum Bank, Dan Sunghan added.

“We’re assuming that Do Kwon, oregon idiosyncratic nether his direction, took retired the magnitude and moved it to different wallet, not to Sygnum, and cashed it retired determination else” aft Kwon’s arrest, the Korean authoritative elaborated, noting that investigators person yet to find the funds.

The Terraform Labs laminitis has been accused of crypto fraud successful the U.S. and the Republic of Korea, with the 2 countries seeking his extradition from Montenegro, wherever helium pleaded not blameworthy to the complaint of utilizing forged question documents and sought to beryllium released connected bail.

Kwon whitethorn beryllium tried successful some South Korea and the United States for the $40 cardinal clang and perchance walk astir of his beingness successful prison, said Dan, who leads the Korean investigation. The 31-year-old antheral tin “be extradited to the U.S. and look proceedings there, and past person the condemnation executed successful South Korea and the U.S. aft that,” the authoritative explained.

Do you deliberation Do Kwon has managed to divert the cryptocurrency to a wallet nether his control? Share your thoughts successful the comments conception below.