According to local Korean media source KBS, authorities urged Binance to stop Do Kwon from sending any cryptocurrencies. Prosecutors are concerned that the creator of Terra would begin trading off cryptocurrency in order to fund his business.
Prosecutors believe that the assets taken from the Terra Luna officials, including Kwon, totaled 414 billion Korean Won (KRW), based on the report. This is equivalent to about $314 million. The money reportedly belongs to nine Terra workers, both present and retired.
About $69 million of the illegal funds belonged to Kwon. Co-founder Shin Hyun-Seong, also known by his alias Daniel Shin, also made close to $41 million off the blockchain. However, given the CEOs’ involvement in the $40 billion Terra Luna blockchain collapse, the sum is « illegal » and hence unlawful.
Property taken from Do Kwon
In Seoul, Hwaseong, Gapyeong, and Taean, South Chungcheong, prosecutors are attempting to take real estate owned by the Terraform Labs founders and executives. The prosecution stated that hardly any property was found in Kwon’s name. The executive probably sold them and sent the money to foreign cryptocurrency exchanges.
“It seems that CEO Kwon sold and converted a large part of his property to Bitcoin.”
The prosecutors have further requested that the executive’s apartments in Seoul, the capital of South Korea, be foreclosed upon. Inquiries are also being made about more properties located around the nation. The following was translated from an extract of the report:
“Prosecutors are extensively tracing domestic property to collect the astronomical profits they earned from Terra.”
Binance’s Participation
Given that Binance is the biggest cryptocurrency exchange in the world, the authorities assume that Kwon shifted his funds to one of the foreign exchanges. This justifies the exchange’s request to freeze each wallet connected to the cryptocurrency fugitive.
Notably, the action will stop cryptocurrency fugitive Do Kwon from withdrawing money.
Do Kwon is being pursued by several authorities
Authorities in several nations are focusing their attention on the co-founder of Terraform Labs. Kwon is battling to avoid going to jail in Montenegro in addition to losing the money he earned from the Terra project.
As previously reported, the former Terraform Labs CEO was detained on March 23 at a Montenegrin airport. Almost seven months had passed since the Interpol Red Notice for flight in 2022 was issued. Additionally, Kwon could be charged with passport fraud in Montenegro, the location of his arrest, at the Podgorica airport. Notably, this may cause any extradition procedures by South Korea to be delayed.
Kwon’s legal counsel alleged at the beginning of April that the U.S. Securities and Exchange Commission (SEC) was working outside of its authority. Also, the regulator accused Kwon of fraud in allegations filed in February.
Given the accusations levelled against the controversial figure in South Korea and the United States, he might spend up to 140 years in prison.
