Do Kwon ordered to stop liquidating millions in crypto by prosecutors
Terra’s fall last May stunned the cryptocurrency community. Terra, once a promising ecology, saw its value drop from $40 billion to almost nothing.
According to investigations, former CEO Do Kwon was at the heart of an extensive fraud conspiracy. Since then, South Korean authorities have attempted to collect criminal funds linked to Kwon and his friends.
Unfortunately, the officials have encountered a number of roadblocks in their efforts. The majority of Kwon’s assets cannot be recovered, as the former CEO allegedly changed them to Bitcoin using offshore crypto exchanges.
Despite this, prosecutors have discovered 414.5 billion won ($314.2 million) in illegal assets linked to Kwon, of which nearly $70 million is directly linked to the former top honcho.
Do Kwon ordered to stop liquidating millions in crypto
Meanwhile, South Korean officials have notified Binance, the world’s largest cryptocurrency exchange, to ban Do Kwon from withdrawing funds. They have asked Binance to freeze all wallets related to Kwon.
Furthermore, the prosecution has seized former Terra managers’ homes and other assets to prevent them from selling an asset that may be linked to legal matters.
Despite an arrest warrant and an Interpol red notice against his name, Do Kwon evaded capture for nearly a year before he was apprehended in Montenegro on March 23 while attempting to travel with false passports.
But he could face charges in Montenegro for passport fraud, which could thwart South Korea’s extradition attempt.
Both South Korea and the United States have requested his extradition, and Do Kwon faces criminal charges in both countries.
What is a red message?
An Interpol Red Notice is a call to police worldwide to locate and temporarily arrest someone wanted for extradition or prosecution by a national jurisdiction.
It is considered one of the highest and most urgent alerts issued by Interpol and is issued at the request of a member nation.
The notice contains information about the wanted person, for example name, photo and a description of the suspected crime for which they are wanted. If a red notice is issued, Interpol member states can take action to capture and extradite the person.
However, it should be noted that a Red Notice is not an arrest warrant and does not oblige member nations to apprehend the individual, but it is a potent tool for international law enforcement cooperation.
Terra LUNA/USD 1 year chart. Image: BeInCrypto
Terra’s demise and the fight for the redesigned network
Terra’s demise has had far-reaching consequences for the cryptocurrency market. The redesigned Terra 2.0 network has received little attention, and the LUNA coin is currently trading at $1.27, far from its high of nearly $20.
The original Terra coin has been renamed Terra Luna Classic, LUNC, and is currently worth $0.00012. Terra stablecoin has been relaunched as Terra Classic USD (USTC), but it is also almost extinct, with a value of only $0.02.
BTC total market cap now at $539 billion on the weekend chart at TradingView.com
The Terra crash and subsequent investigation have exposed the dangers associated with the cryptocurrency market.
The South Korean authorities’ efforts to seize ill-gotten gains from Do Kwon and his accomplices indicate their determination to combat fraud and other related crimes.
Still, the difficulties they face in doing so underscore the need for increased regulation and oversight in the cryptocurrency industry.
– Featured image from Coinpedia
