From Luna to Bitcoin: Do Kwon converts illicitly
South Korean prosecutors made a groundbreaking discovery by identifying 414.5 billion Won ($314.2 million) assets linked to Do Kwon (co-founder of Terraform labs) along with his associates.
These assets discovered are called to be unlawful and allegedly made. After Luna to Bitcoin news, The investigation took place further and disclosed that approx 91.4 billion won ($69 million) of illicit funds are linked with Kwon.
- South Korean prosecutors found $314.2 million in illicit assets linked to Do Kwon and his associates.
- Kwon allegedly converted $69 million of illicit funds from Luna to Bitcoin using an overseas exchange.
- Authorities asked Binance to stop any withdrawals related to Kwon and Binance is cooperating.
- Prosecutors confiscated the homes and assets of former Terra employees to prevent them from selling items related to the investigation.
- Kwon is responsible for fraudulent activities that caused the collapse of the Terra Luna ecosystem. He evaded arrest for a year before being caught in Montenegro.
Although, Kwon with billion the worth of assets, he remains untouchable by South Korean authorities. Also, the former CEO has reportedly converted his many illicit funds, Luna to the BTC chart with the aid of an overseas crypto exchange.
The authorities of South Korea have put forward their request to Binance to put a full stop to any sort of withdrawal request linked to Kwon.
According to reports Binance is providing full support and cooperation to prosecutors.
“We provided Korean LE authorities with the requested assistance. Since we can’t comment on ongoing LE investigations, for any further comment please reach out to the prosecutors.”
In a Twitter post shared by Simply Bitcoin, there is an unanswered question about conversion of the illicit funds by Kwon
During ongoing investigations, prosecutors from South Korea are making efforts to trace any property directly associated with Terraform lab executives. Constant efforts are in process to reclaim illicit funds coiled in Luna BTC reserves that were lost in the terra luna debacle.
The prosecutor took firm action on April 3rd by confiscating homes and main assets in order to prevent former Terra employees from selling items that might help in legal proceedings.
Along with the former CEO Shin Hyun- Seong’s residence, prosecutors targeted associates as well and kept an eye over foreign-registered vehicles, lands in Hwaseong and Gapyeong in Gyeonggi-do, and Taean in South Chungcheong Province to further carry on the investigation.
Once terra luna was one of the thriving cryptocurrency ecosystems. It was built on algorithms based on the stablecoin and Terra UDS classics. From Luna to Btc it came a long way.
In May 2022, the stablecoin’s value deviated from its core, and the 40 billion$ ecosystem got demolished, resulting in the Luna Bitcoin crash, which was initially believed to be market-driven.
Crypto Mak posses a question in a Twitter post if Kwon was involved in Luna to Bitcoin journey:
However, further investigation opened about the reason for the collapse as it was due to fraudulent activities and the former CEO Kwon was the skillful master of it. According to on-chain data, a single entity dumped over $450 million of USTC on the open market in the three weeks leading up to the depeg, after which USTC’s value plummeted.
Despite constant efforts of catching up with Interpol’s red notice and issuing an arrest warrant against him but Kwon managed to evade arrest repeatedly for a year. Finally, he got caught in Montenegro dated March 23.