South Korean crypto entrepreneur Do Kwon, the founder of Terraform Labs, is facing allegations that he moved crypto assets worth millions following his arrest in March this year.
According to a South Korean prosecutor, Kwon allegedly transferred approximately $29 million in digital coins from an entity linked to his blockchain project before its collapse last year. The funds were believed to have been moved personally by Kwon or at his request.
Kwon, who had disappeared after the Terra/Luna ecosystem failed in May 2022, was apprehended while attempting to leave Montenegro with a fake passport. He is currently on trial in Montenegro, where he has pleaded not guilty to charges of using false travel documents. South Korea and the United States have requested his extradition, as he is at the center of crypto fraud allegations in both countries.
The fate of the cryptocurrencies taken from Kwon’s cryptographic wallet remains uncertain, as authorities are still attempting to locate them. In addition to the $29 million in digital coins, Kwon was also alleged to have siphoned off another 10,000 BTC or more, according to a statement by the US securities regulator.
Further investigation revealed that Kwon and his associates may have deposited at least $13 million with Signum Bank, a Swiss bank specializing in cryptocurrencies. The South Korean authorities suspect Kwon moved the funds to a different wallet and cashed them elsewhere.
If convicted, Kwon could face trial in both South Korea and the United States, potentially leading to a sentence of spending most of his life in prison. The 31-year-old entrepreneur could be extradited to the United States to face trial there and serve his sentence in both countries.
Kwon’s detention in Montenegro has been marred by reports of distressing conditions in the country’s prisons. While there was a brief moment of hope when Kwon and his accomplice were granted permission for release on bail, a higher court later reversed the decision.
Moreover, suspicions about Kwon potentially hiding $100 million in a Swiss bank account have emerged. The investigation into these allegations continues as authorities work to unravel the complex web of financial activities involving the crypto entrepreneur.
