Korean officials linked nearly 91.4 billion won, worth about $69 million, in digital assets directly to Do Kwon.
South Korean officials continue to question former Terraform Labs co-founder Kwon Do-Hyung, better known as Do Kwon, after he was arrested earlier last month in Montenegro while trying to flee to Dubai. The collapse of Terra Luna and its algorithmic stablecoin UST has resulted in the loss of more than $40 billion from the cryptocurrency market. As a result, the entire cryptocurrency industry capitulated and has not fully recovered since. Moreover, regulations around the world are not fully put in place to prevent such incidents from existing crypto companies.
In addition, the collapse of FTX and Alameda Research significantly distorted the state of the cryptocurrency market.
South Korean officials at Do Kwon from Terra Luna
According to recent court revelations, Do Kwon had no solid property that could be confiscated in South Korea. However, South Korean officials have identified about 414.5 billion won worth about $314.2 million in illicit assets linked to Do Kwon and his associates. Interestingly, Korean officials linked nearly 91.4 billion won, worth about $69 million, in digital assets directly to Do Kwon.
Reportedly, Kwon used offshore cryptocurrency exchanges to convert Terra Luna proceeds into Bitcoin. As a result, Korean officials have asked Binance, the largest centralized cryptocurrency exchange by daily trading volume, to halt any withdrawals linked to Kwon or its partners.
Meanwhile, Binance confirmed that it is working closely with the Korean plaintiffs and is providing them with the necessary assistance.
“We have provided the Korean LE authorities with the required assistance. Since we cannot comment on the ongoing LE investigation, for any additional comment, please contact the prosecutors,” Binance noted.
according to a report According to a South Korean media outlet, the illicit proceeds by Terraform Labs co-founder Shin Hyun-Seong, and former CEO Chai, amounted to about 154.1 billion won. The remaining seven Terra employees were reported to have stolen a total of 169 billion won from the investors.
game over
Investors in Terraforms Labs have had to reckon with the collapse of Luna and UST and a forced liquidation that may never be recovered. The Terra Luna project turned into Terra Classic LUNC, which was trading at around $0.0001251 on Friday. According to market data provided by Coinmarketcap powered by Binance, Terra Classic LUNC has a market cap of approximately $737,726,064 and a 24-hour trading volume of approximately $116,073,937.
However, the community-owned Terra Classic LUNC has distanced itself from Do Kwon who is wanted by several jurisdictions including Singapore and the United States for fraud.
Currently, it is not clear whether Do Kwon will be imprisoned in South Korea or the United States. However, his arrest and prosecution would be a stern warning to other crypto projects seeking to defraud investors.
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