Do Kwon, Terraform Labs Withdraw Millions A Year After Terra-LUNA Crisis

Terra co-founder Do Kwon reportedly withdrew 2.8 billion won ($2.15 million) worth of digital assets before his bail was approved by a Montenegro court, according to reports by several South Korean media outlets.

CoinGape Media earlier reported that Terraform Labs, co-founded by Do Kwon and Daniel Shin, transferred 1.8 million Convex Finance (CVX) tokens worth nearly $8.7 million.

Terra’s Do Kwon Withdraws 2.15 Million Worth USDT and LUNC

Stablecoins worth $400,000 and Terra Classic (LUNC) worth $150,000 were withdrawn from wallets reportedly managed by Terra co-founder Do Kwon, reported KBS News on May 18.

The withdrawals came before the Montenegro court accepted 400,000 Euro ($436,000) per person bail for Do Kwon and former CFO Han Chang-joon on May 12. Both will remain under house arrest until the court proceedings are completed on the passport forgery case and followed by the extradition case.

The Montenegrin prosecutor’s office has appealed the court’s decision granting Do Kwon’s bail application citing flight risk as the bail amount is far less as compared to their assets. The withdrawals are taking place as South Korean prosecutors move to freeze assets belonging to Do Kwon, as well as related individuals. Assets and luxury items worth $175 million were frozen by prosecutors. A Do Kwon’s aide is reportedly behind these withdrawals.

Meanwhile, Terraform Labs moved millions of Convex Finance (CVX) tokens to a different wallet. Etherscan data confirms Terraform Labs transferred 100 CVX tokens to the wallet address 0x15A5. It followed another big transfer of 1.83 million CVX worth $8.7 million to the wallet address 0x15A5. The wallet currently has no CVX tokens now, but holds Convex CRV (cvxCRV) tokens worth $26.5k.

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Moreover, Do Kwon still have assets worth millions in a Swiss bank. South Korea and the U.S. actively seeking extradition of Terra co-founder as he was arrested in Montenegro after being on the run for several months. Meanwhile, South Korean prosecutors continue their investigation of the Terra-LUNA crisis, while also preparing for co-founder Daniel Shin’s trial.

Terra Classic (LUNC) price currently trades at $0.000090, down 1% in the last 24 hours and Terra (LUNA) trades 1% high at $0.94.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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