Do Kwon Transferred Millions Before his Arrest: Reports

Do Kwon, the co-founder and former chief executive officer of Terraforms Labs, is accused of transferring millions of dollars in cryptocurrency to an unidentified wallet before his arrest at Podrica airport.

The allegations were made by Dan Sunghan, the Director of Financial Crime Investigation at Seoul Southern District Prosecution Service. He stated that the cryptocurrencies transferred to the unidentified wallet was worth $30 million.

As per numerous reports, Do Kwon is the mastermind behind the development and demise of the LUNA token, but he has not yet verified this information personally. People familiar with the issue say that the co-founder was aware of the situation and upcoming disaster.

The collapse of LUNA/UST was one of the most destructive events in the crypto market, which wiped out billions of U.S. dollars in just a few days.

Following these severe allegations,it is possible that Do Kwon might be extradited to the U.S. or South Korea for his trial. Some sources also revealed that the amount of crypto transferred was cashed out under unknown circumstances.

It is important to note that prosecutors are working hard to trace down the funds, and are committed to discovering where they have been diverted, and who is holding the wallet which received $30 million in crypto.

List of Allegations on Do Kwon and His Associates

Every region where trading of Luna was allowed has brought forward dozens of allegations against Do Kwon and his associates, and these include charges of market manipulation, fraud, bribery, violation of market laws, and using trader bots.

Chai is a company owned by Daniel Shin, who is also the co-founder of Terraform Labs. Chai was alleged of using users’ information to boost the adoption of Luna among the general audience while presenting luring offers in front of them.

Some of the prosecutors of Montenegro claim that Do Kwon has close contacts with the political parties based in the region. Although Do Kwon has not confirmed the allegations of political connection, prosecutors allege that the urgent bail of the Terraform co-founder might have some political backing.

Do Kwon was holding more than 90% of the company ownership and financial claims, aware of the collapse of his LUNA token. Terraforms was founded by Daniel Shin and Do Kwon.

Most recently, the lower Court of Montenegro has reapproved Do Kwon’s bail along with that of the former Chief Financial Officer of Terraform Labs. Subsequently, the Court’s court clerk filed an appeal against the Court’s decision in the High Court.

As per court filings, Do Kwon and his associates were trying to flee from Montenegro using fake passports, and two passports, driving licenses, and other forged documents were recovered from them.

The recent FTX collapse has stirred the crypto market, wiping billions of dollars from the industry. Many companies in the crypto sector opted for bankruptcy following the demise of FTX, which was among the third largest crypto exchanges at the time in 2022 beginning.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing