Korean Prosecutors Target Terra Founder Do Kwon's Crypto Assets Amid Multi-Country Legal Issues
Korean prosecutors are targeting the cryptocurrency assets of Do Kwon, the founder of failed blockchain project Terra.
Kwon allegedly funneled tens of millions of dollars out of Luna Foundation Guard (LFG), which he set up to help defend his now-defunct stablecoin TerraUSD's peg to the dollar, according to Dan Sunghan, director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service.
The whereabouts of Kwon's $29 million worth of digital tokens, which were transferred from a crypto wallet belonging to LFG, are currently unclear, Sunghan said in a recent interview with Bloomberg News.
He added that the funds his unit is tracing are in addition to more than 10,000 Bitcoin that Kwon had already diverted from his entities.
Alongside this, he and his associates still hold just over $13 million at Swiss crypto-focused lender Sygnum Bank AG.
“We’re assuming that Do Kwon, or someone under his direction, took out the amount and moved it to another wallet, not to Sygnum, and cashed it out somewhere else,” after his arrest, Sunghan said.
South Korean prosecutors are attempting to have the remaining $13 million held at Sygnum frozen.
The funds were transferred from LFG's crypto wallet to a separate one before moving via an over-the-counter service to the bank.
South Korean prosecutors are also attempting to trace the whereabouts of Kwon's assets, which were likely moved by Kwon personally or at his direction.
Sunghan also said that Kwon’s extradition to South Korea makes more sense but adds that the Terraform Labs co-founder could serve time in the United States as well.
Kwon was arrested in Montenegro in March for allegedly using forged travel documents.
In addition to this, Kwon was charged with
Read more on cryptonews.com
