Do Kwon’s Assets are ‘in the Process’ of Being Frozen by South Korean Authorities
The apprehension of Do Kwon merely represents the top of the iceberg for South Korean prosecutors.
South Korean authorities are awaiting a court order to confiscate Do Kwon’s $5,3 million worth of assets. They are also attempting to locate overseas funds and Swiss bank accounts. According to reports, prosecutors have urged Binance to halt all Kwon withdrawals from the exchange.
Officials in Kwon’s home country have been investigating him since last autumn when they claim he refused to cooperate.
In September, after South Korea issued an arrest warrant for Kwon and accused him of fleeing, Interpol issued a red notice — a request to law enforcement agencies around the globe designed to facilitate arrests and make it difficult for criminals to cross borders.
This ultimately resulted in his detention at the airport in Podgorica, the capital of Montenegro, in March. Both South Korea and the United States are presently attempting to extradite Kwon, despite an ongoing investigation into the validity of his passport in South Korea. Extradition to either nation is not anticipated to occur soon.
In November, South Korea invalidated Kwon’s passport. Prior to his apprehension, Kwon asserted that he was not on the run, but concealed his location out of concern for his safety.
The United States has charged him with fraud and conspiracy to manipulate the TerraUSD price. In addition, he is being sued in Singapore by 369 investors who claim to have lost approximately $57 million due to the collapse of TerraUSD. Investors allege that Kwon made “fraudulent misrepresentations” regarding the stability of the stablecoin, and they seek restitution.
TerraUSD, an algorithmic stablecoin co-founded by Kwon, lost its dollar basis in May and erased $40 billion off the value of cryptocurrency markets, with $20,5 billion coming from personal wallets, per Chainalysis.