South Korean authorities are awaiting a court order to freeze $5.3 million in assets of Terraform co-founder Do Kwon.
They are also tracing the proceeds abroad and Swiss bank accounts. Prosecutors have asked Binance to stop all withdrawals from Kwon on the exchange.
Kwon has been under investigation by South Korean officials since last fall when authorities claimed he refused to cooperate. Prosecutors are investigating Kwon for fraud, tax evasion, deceiving investors and violating capital markets laws.
Interpol’s red notice (calling on law enforcement worldwide to allow the arrest and prevent criminals from crossing the border) was issued in September after South Korea issued an arrest warrant for Kwon and charged him with the crime. we run away.
Kwon finally caught the net in March, at the airport in Podgorica, the capital of Montenegro.
Both South Korea and the United States are currently seeking Kwon’s extradition, although he is currently under investigation by local authorities over the validity of his passport. Therefore, it is expected that extradition to either country will take more time.
South Korea invalidated Kwon’s passport in November. Before his arrest, Kwon claimed not to flee but kept his location secret due to safety concerns.
The US has charged Kwon with fraud and conspiracy to manipulate the price of TerraUSD.
He also faces a lawsuit in Singapore brought by 369 investors who claim to have lost about $57 million in the TerraUSD crash. Investors allege that Kwon “fraudulently misrepresented” the stability of the stablecoin and demanded damages.
The TerraUSD algorithmic stablecoin that Kwon co-founded lost its dollar peg last May and wiped $40 billion in value from the crypto market, with $20.5 billion of that coming from personal wallets according to Chainalysis.