Do Kwon sold his property and converted it to Bitcoin
Korean prosecutors have contacted the world’s largest crypto exchange Binance. They have requested that it prevent crypto fugitive Do Kwon from withdrawing funds.
On April 4, Korean local media KBS reported that prosecutors have asked Binance to block any crypto transfers from Do Kwon.
They fear that he will start liquidating crypto from the proceeds by selling real estate.
They estimated that assets seized from the Terra/Luna leaders, including Kwon, were KRW 414 billion (around US$314 million). Furthermore, Do Kwon’s share of the illegal funds was around $69 million.
According to the report [translation]:
“Prosecutors are heavily tracking domestic property to collect the astronomical profits they made from Terra.”
Do Kwon has no property
The first step in recovering some of these assets is to seize domestic property, it reported.
Prosecutors have applied for a ban on the sale of managers’ apartments in the Korean capital, Seoul. In addition, there are properties located all over the country also under investigation.
However, prosecutors also revealed that Do Kwon did not own any property in Korea.
“It appears that CEO Kwon sold and converted a large portion of his property into Bitcoin,” the report said. This was then transferred to foreign crypto exchanges.
Binance, being the biggest, could have been one of them. The prosecution now wants the stock exchange to freeze wallets linked to the crypto flight.
The former Terraform Labs CEO was arrested at an airport in Montenegro on March 23. He was served with an Interpol Red Notice after he fled in September 2022.
However, he could also be prosecuted in Montenegro for passport fraud. As a result, this could delay any extradition attempt from South Korea.
Earlier this month, Kwon’s lawyers accused the US Securities and Exchange Commission of acting outside its jurisdiction. The agency had charged Kwon with fraud in February.
No love for LUNA 2
The renamed Terra 2.0 chain has gained very little traction. The LUNA token was trading at $1.27 at the time of writing.
The asset rose to nearly $20 when it was rebranded and relaunched in late May 2022. Since then, it has collapsed by more than 93%.
The original token was renamed Terra Luna Classic, LUNC. At press time, it’s pretty much worthless, trading at $0.00012.
Terra stablecoin renamed itself Terra Classic USD (USTC). It is also almost dead. The assumed dollar-pegged asset is worth just $0.02.
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