South Korean Prosecutors Urge Binance To Block Do Kwon From Liquidating Millions In Crypto

Updated: 07 April 2023

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Korean local media outlet KBS reported that prosecutors asked Binance to block any cryptocurrency transfers by Do Kwon. This comes as the prosecutors fear the Terra founder would start liquidating crypto from the proceeds of selling property.

🚨BREAKING- 🇰🇷South Korean prosecutors have investigated and seized more than $200 million in real estate of #Terra executives and employees‼️😲#LUNA #LUNC #Crypto #UST #cryptomarket #CryptoNews https://t.co/Bs0aOjIsg8

— Ajay Kashyap (@EverythingAjay) April 3, 2023

Based on the report, the prosecutors estimate that assets seized from the Terra Luna executives, Kwon included, totaled 414 billion Korean Won (KRW). This is approximately $314 million. Reportedly, the amount belongs to nine employees of Terra, former and current alike.

Kwon’s share of the unlawful funds was around $69 million. Additionally, co-founder Shin Hyun-Seong, known as Daniel Shin, accumulated close to $41 million from the blockchain. Nevertheless, the amount is “illegal” following the executives’ connection with the $40 billion collapse of the Terra Luna blockchain.

Do Kwon Properties Seized

Prosecutors are trying to seize properties owned by the Terraform Labs founders and executives in Seoul, Hwaseong, Gapyeong, and Taean, South Chungcheong. The prosecution noted that they had identified almost no property under Kwon’s name. Presumably, the executive sold them and transferred the proceeds to crypto exchanges overseas.

It seems that CEO Kwon sold and converted a large part of his property to Bitcoin.

Furthermore, the prosecutors have also applied for the foreclosure of sales of the executive’s apartments in the Korean capital Seoul. Other properties in different parts of the country are also under investigation. An excerpt from the report was translated to:

Prosecutors are extensively tracing domestic property to collect the astronomical profits they earned from Terra.

Binance’s Involvement

Given that Binance is the largest crypto exchange in the world, the prosecutors presume it must be one of the overseas exchanges where Kwon transferred his assets. This explains the request to the exchange to freeze every wallet linked to the crypto fugitive.

Noteworthy, the move will prevent crypto fugitive Do Kwon from withdrawing funds.

Do Kwon In The Crosshairs Of Multiple Authorities

The Terraform Labs co-founder is caught in the crosshairs of multiple countries’ authorities. Besides losing the money he collected from the Terra project, Kwon is fighting to avoid prison in Montenegro.

As reported ex-Terraform Labs boss was arrested at an airport in Montenegro on March 23. This was almost seven months after receiving an Interpol Red Notice for fleeing in 2022. Furthermore, Kwon could also face charges in Montenegro for passport fraud at the Podgorica airport, the place where his arrest happened. Notably, this could delay any extradition efforts by South Korea.

In early April, Kwon’s legal representatives accused the U.S. Securities and Exchange Commission (SEC) of acting outside its jurisdiction. Notably, the regulator filed charges against Kwon in February, citing fraud.

The controversial figure may face jail time of around 140 years, considering the charges against him in the U.S. and South Korea.