• Korean prosecutors are targeting Do Kwon’s cryptocurrency assets as part of a multi-country legal issue.
• Kwon allegedly funneled millions of dollars out of Luna Foundation Guard and is being traced for more than 10,000 Bitcoin.
• In addition to this, US authorities have charged Kwon with securities fraud, wire fraud, commodities fraud, and conspiracy.
Targeting Do Kwon’s Crypto Assets
Korean prosecutors are targeting the cryptocurrency assets of Do Kwon, the founder of failed blockchain project Terra. Dan Sunghan, director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service alleges that Kwon funneled tens of millions of dollars out of Luna Foundation Guard (LFG) which he set up to help defend his now-defunct stablecoin TerraUSD’s peg to the dollar. The whereabouts of $29 million worth digital tokens transferred from LFG’s crypto wallet remain unknown. In addition, more than 10,000 Bitcoin were diverted by Kwon and his associates still hold just over $13 million at Swiss crypto-focused lender Sygnum Bank AG.
Investigating Funds Frozen in Switzerland
South Korean prosecutors are attempting to have the remaining $13 million held at Sygnum frozen as it was transferred from LFG’s crypto wallet via an over-the-counter service to the bank. They are also tracing other assets allegedly moved by Kwon personally or at his direction.
US Charges Against Do Kwan
In March 2021, Don Kwom was arrested in Montenegro for using forged travel documents and then subsequently charged with eight counts of fraud in New York including two counts each for securities frauds, wire frauds commodities fraud and conspiracy. The US Securities & Exchange Commission has also sued Terraform Labs and CEO Don Kwom for conducting a multibillion dollar cryptocurrency fraud by making false and misleading statements during a TV interview about adoption rate on Terra blockchain platform among users .
Extradition To South Korea Or US?
Dan Sunghan also said that Don Kwom’s extradition to South Korea makes more sense but added that he could serve time in United States as well .
Do Kwom is facing multi country legal proceedings over alleged fraudulent activities related to cryptocurrency trading , investment , money laundering etc . South Korean prosecution wants funds frozen at Sygnum Bank AG whereas US authorities want him extradited for charges related to securities , wire , commodity and conspiracy fraud .