The founder of the failed Terra ecosystem, Do Kwon, and his accomplices managed to withdraw about $314 million into bitcoin (BTC). writes Korean edition of KBS, citing the local prosecutor’s office. According to law enforcement agencies, Kwon personally owns about $ 70 million, but the amount is not final.
The authorities are unable to gain control of the cryptocurrency, as the disgraced crypto entrepreneur converted the stolen money into bitcoin on various exchanges before his arrest, the newspaper writes. It is not clear which trading platforms we are talking about. By information The media, the Korean security forces have already demanded at least Binance to block all transactions for the withdrawal of cryptocurrency associated with Kwon. The representative of the exchange confirmed the request.
Recall that Do Kwon was arrested at the airport in Montenegro while trying to get to Dubai. According to the Minister of Internal Affairs of Montenegro Philipp Adzic, the former crypto magnate was detained at the Podgorica airport with forged documents.
Hours after his arrest, New York City prosecutors filed fraud charges against Terraform Labs founder Do Kwon. In the resolution saysthat Kwon is charged with eight counts, including conspiracy to defraud, securities and asset fraud, financial fraud and conspiracy to manipulate the market. The prosecutor’s office wants to confiscate Kwon’s movable and immovable property obtained as a result of fraud. In addition, the US Department of Justice plans to seek the extradition of the founder of Terraform Labs to the United States.
- Law enforcement in Seoul launched an investigation against Terraform Labs and Do Kwon back in May 2022. The plaintiffs were investors who lost more than $1 million from investing in Terra. At the same time, the UST stablecoin lost its peg to the US dollar.
- UST/USD quotes fell from $1 to $0.12. The native token of the Terra ecosystem was also hit, losing 100% in a week in the LUNA/USD pair. Later, the crypto community found out that Terraform Labs employees could be behind the collapse.
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