- No assets belonging to Kwon have been located in South Korea.
- Do Kwon, the founder of Terraform Labs, has been charged with fraud in both the United States and South Korea.
- The inquiry alleges that Kwon and nine other Terraform Labs personnel stole 414.5 billion won.
A new report indicates that Do Kwon, the founder of Terraform Labs, has no assets that can be traced to him in his home country of South Korea.
Kwon, who has been charged with fraud in both the United States and South Korea, was detained in Montenegro on November 23 on suspicion of using counterfeit passports. Significantly, no assets belonging to Kwon are located in South Korea. Moreover, prosecutors claims that he and nine other officials fraudulently benefitted from the project.
The investigation claims that Kwon, along with nine other former and present officials of Terraform Labs, illegally accumulated 414.5 billion Korean won ($314.2 million). All of Kwon’s assets are outside the jurisdiction of the prosecution, but they estimate that 91.4 billion won of the total belong to him.
Previously, prosecutors had alleged that Kwon utilized Terraform’s assets to engage in trading between two cryptocurrency exchanges, KuCoin and OKX. The prosecutors further claimed that they requested the two exchanges to freeze and return 39 billion won, equivalent to approximately US$29.6 million worth of digital currencies owned by Kwon.
The amount was deposited on the exchanges via Binance and affiliated with Kwon’s Luna Foundation Guard’s digital wallet.
Despite the allegations made by the prosecutors, Do Kwon took to Twitter to deny the claims made by the legal experts. In his post, he expressed his surprise at the spread of misinformation and categorically rejected any cashout as alleged. He also clarified that he had not used KuCoin or OKX for at least the last year.
What has been probably the most surprising in all this is the amount of misinformation that gets spread.
— Do Kwon 🌕 (@stablekwon) September 28, 2022
There is no “cashout” as alleged, i havent used kucoin or okex in at least the last year, and no funds of tfl, lfg or any other entities have been frozen. https://t.co/E1cbKgoqQz
Assets of Co-founder Shin Hyun-Seung Seized
Assets belonging to Terraform co-founder Shin Hyun-Seung, also known as Daniel Shin, have been temporarily frozen by local authorities. According to prosecution claims, Shin made more than 154 billion won in unlawful gains from the doomed Terra-Luna project. Authorities in Shin’s home country have lately ordered that cryptocurrency held on Binance and other worldwide exchanges be frozen.
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