According to local authorities, Do Kwon does not own any property that could be seized in South Korea. However, an investigation reveals that Do Kwon and his top associates have generated at least $314.2 million from Terra (LUNA). Although the money is not under the jurisdiction of South Korean authorities, Binance reportedly agreed to cooperate with local police to help freeze the funds.
Do Kwon only owns intangibles
While Do Kwon is currently imprisoned in Montenegro, where he was recently arrested along with his financial director, the various legal investigations are taking their course. Thus, according to local authorities, Do Kwon reportedly does not own any property that could be seized in South Korea.
However, the founder of Terraform Labs is not to be pitied financially. Indeed, a recent investigation reveals that Do Kwon and his top associates reportedly generated at least 414.5 billion won in profit from Terra (LUNA), which equates to approximately $314.2 million.
Although he doesn’t seem to own any material possessions that can be seized in his native land, Do Kwon – whose real name is Kwon Do-Hyung – does, however, have some spare cash. Out of all of the loot associated with the major players in Terraform Labs, the founder of the company would hold no less than 69 million dollars directly from Terra’s receipts and the sale of his house.
However, the money is unfortunately not currently under the jurisdiction of the South Korean authorities as the funds have been fully transformed into Bitcoin (BTC) via offshore exchanges. As such, Binance reportedly agreed to cooperate with local police to help freeze funds.
The exchange, however, remained discreet on this subject, contenting itself with confirming that it complied with the requests of the authorities, and this without specifying what amount was hosted on its platform.
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A very uncertain future for the managers of Terraform Labs
As part of the investigation, the South Korean authorities have already seized many properties and vehicles belonging to Do-Kwon’s inner circle in order to prevent individuals from trying to conceal their funds as the latter was able to do.
It only remains to hope that the arrest of Do Kwon finally allows to disentangle the true from the false concerning the collapse of Terra, which will have resulted in more than 40 billion dollars of loss for investorssince the project hosted 2 cryptocurrencies among the 10 most capitalized on the market, namely UST and LUNA, which are now worth nothing.
Do Kwon, who has always pleaded not guilty to the public charges he has targeted, would have indeed caused this collapse itself. As @FatManTerra pointed out last December, Terraform Labs would have massively sold hundreds of millions of UST within days to bring down the algorithmic stablecoin:
This bombshell data, collated by the anonymous researcher @Cycle_22 (who discovered the Hodlnaut insolvency), reveals that TFL suddenly began furiously dumping hundreds of millions of UST only days before the depeg. pic.twitter.com/8r3JvR2IB7
— FatMan (@FatManTerra) December 6, 2022
For now, Do Kwon is still expected to spend some time in prison in Montenegro. before being extradited to South Korea or the United States.
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Source: KBS
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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