South Korean prosecutors identified 414.5 billion won ($314.2 million) in illicit assets associated with Terraform Labs co-founder Do Kwon and his associates. Of the $314 million in illicit assets identified, prosecutors linked around 91.4 billion won ($69 million) of the specified amount to Kwon.
Although Kwon amassed millions, none of the assets tied to him are recoverable or under the jurisdiction of South Korean authorities. This is mainly because the now-arrested former CEO reportedly converted most of the illicit funds into Bitcoin (BTC) using offshore crypto exchanges instead of investing in physical assets, according to a report published in the South Korean newspaper KBS.
South Korean authorities have requested Binance to stop any withdrawal requests associated with Kwon. Binance confirmed to Cointelegraph that they are, in fact, cooperating with prosecutors and offering any help they need.
"We provide the Korean LE authorities with the requested assistance. Since we are unable to comment on the ongoing LE investigations, for any additional comments, please contact prosecutors."
South Korean prosecutors are actively tracing properties associated with Terraform Labs executives to recover some of the illicit funds from the Terra-Luna debacle. On April 3, prosecutors seized houses and other property in an effort to prevent former Terra employees from selling things that could be tied to legal cases.
In addition to residences in Seoul owned by former CEO Shin Hyun-seong and others, prosecutors also filed foreclosure actions against his foreign-registered vehicles, land in Hwaseong and Gapyeong in Gyeonggi-do, and Taean in Chungcheong province. from the south.
Related: Do Kwon faces fraud charges from US prosecutors hours after arrest
Terra Luna was a booming crypto ecosystem based on the algorithmic Terra-USD classic (USTC) stablecoin. However, the stablecoin depegged in May 2022, causing the $40 billion ecosystem to collapse in a matter of days.
What was initially thought to be a market-triggered event turned out to be a clear case of fraud, with former CEO Kwon at the center of it all. According to the chain's data, in the 3 weeks prior to the untying, an entity offloaded more than $450 million of USTC on the open market. 4 days after his last sale, USTC began to crash. And the entity behind the massive dump was none other than Terraform Labs.
TFL has been perpetrating the narrative that UST was "attacked". This is a false flag. In reality, the TFL themselves weakened Curve's pool by irresponsibly dumping a massive amount of UST in a short amount of time. This reduced liquidity and severely weakened the peg.
โFatMan (@FatManTerra) December 6, 2022
Despite an arrest warrant from South Korean authorities and an Interpol red notice against his name, Kwon continued to evade arrest for nearly a year before get caught on march 23 in montenegro
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