South Korean prosecutors are seeking a court order to freeze $5.3 million worth of Do Kwon’s assets in the country, according to Yonhap News.
Kwon, co-founder of Terraform Labs, was arrested in Montenegro last month, and both South Korea and the U.S. are looking to extradite him for trial.
Kwon has been under investigation in South Korea for fraud and tax evasion since the Terra-LUNA collapse that wiped out nearly $40 billion in market value in May 2022. Prosecutors are also investigating potential criminal proceeds that Kwon generated overseas, which are parked in various cryptocurrency exchanges and Swiss bank accounts.
Kwon Converted His Assets To Bitcoin
Prosecutors recently stated that Kwon had “almost no property” in South Korea because he had converted them to Bitcoin (BTC) and transferred them to foreign exchanges such as Binance. They had contacted Binance to freeze Kwon’s assets on the exchange.
In addition, authorities froze around $116.5 million worth of assets belonging to Daniel Shin, who co-founded Terraform Labs with Kwon, including land, buildings, and cars. South Korean authorities claim that Kwon, Shin, and seven other Terraform employees made approximately $314.2 million by defrauding investors.
Kwon was charged by U.S. authorities with eight counts of fraud, including securities, commodities, and wire fraud, after his arrest in Montenegro. He is currently being held in Montenegro, and both the U.S. and South Korea are looking to extradite him.
Shin remains free, as a South Korean court turned down the prosecutor’s request for an arrest warrant for the second time in March.
