- Do Kwon’s months-long run from authorities ended in March.
- South Korean authorities are looking to freeze the Terra founder’s profits.
- Authorities have reached out to Binance for help.
The Terra ecosystem collapse in 2022 sent shockwaves through the crypto industry that are still being felt today. The man at the center of this debacle – Do Kwon – was able to evade authorities for months, reportedly hopping from one country to another through fake credentials.
The controversial Terra Founder’s run ended in March when Montenegrin authorities apprehended him. While U.S. and South Korean authorities battle for dibs, new reports indicate that the latter are moving to freeze the Kwon’s Terra profits allegedly converted to Bitcoin.
Authorities Claim to Be in Talks with Binance
The talks come as part of a move to seize the allegedly ill-gotten gains made by Kwon and his cohorts from Terra, estimated to be worth around 414.5 billion won (approximately $314.2 million at current rates), by repossessing domestic property. However, Kwon, who reportedly holds an estimated 91.4 billion won ($69 million) from the loot, has no property in Korea.
"It was found that there is almost no property owned by CEO Kwon in Korea," an official said per the report.
Prosecutors believe the Terra founder sold his assets for Bitcoin, currently held on “an overseas crypto exchange,” which the report suggests could be Binance.
Binance has yet to respond to a request for comment.
Kwon’s Grand Tour
Kwon faces charges of capital market laws violation in South Korea. Meanwhile, in the U.S., the Securities and Exchange Commission (SEC) has charged him with fraud and selling unregistered securities. At the same time, authorities in Singapore have also launched investigations into Terra.
Though he asserted he was not on the run, the Terra Founder was allegedly spotted in Dubai, Serbia, and Singapore.
For months, he taunted law enforcement while continuing work on a new blockchain called Terra 2.0, despite the colossal failure of the first project.
He was arrested in Montenegro on March 23 on his way to board a private plane to the United Arab Emirates (UAE) with falsified documents.
On the Flipside
- Kwon has reportedly requested luxury treatment in Montenegrin detention.
- Montenegrin authorities are yet to decide where they will deport the fugitive.
Why You Should Care
The Terra ecosystem collapse in May 2022 wiped out the savings of several retail crypto investors and has turned several jurisdictions crypto-averse. The seizure of the assets of Terra founders, including Kwon, will likely give victims some closure.
Want more details of Do Kwon’s life in Montenegrin prison? Read this:
Do Kwon Faces a Gloomy Year in Montenegro’s Notorious Prison System
Interested in the crypto market’s recent rallies? Check this out instead:
Can Crypto Markets Sustain Recent Rallies? Industry Experts Weigh In