The CEO of the crypto firm Terraform Labs has been talking about him lately. Almost every week, a new element filters through, on the immense deception he set up and which led his company to its downfall.
Do Kwon converted funds linked to Terra-Luna into bitcoin
The Do Kwon scandal has obviously not finished revealing its secrets. A few days ago, approximately $160 million in assets related to Terraform Labs were seized in South Korea. This time, the country’s authorities made a surprising new discovery.
According to recent information, the South Korean justice has identified some $314.2 million in assets deemed illicit in connection with Terraform Labs. Of that total, $69 million is known to be directly tied to Do Kwon, the boss of Terraform Labs himself.
The news can immediately be seen as a good pickaxe. However, this is not the case when one realizes that the funds in question are not accessible. Consequently, their seizability is at the very least uncertain, if not impossible.
Because, you should know that Do Kwon had the idea of converting these assets into bitcoin. An operation, passed incognito, because carried out via crypto platforms hosted abroad. Ingenious choice compared to his collaborators who, for the most part, invested the embezzled funds, in physical assets such as real estate acquisitions.
The seizure of assets converted into bitcoin is all the more unlikely since, for the most part, they are outside the territorial jurisdiction of the South Korean authorities. For the moment, the minimum they have been able to do is to seek the intervention of the crypto company Binance.
To this one, they asked for its assistance, so that the assets of the leader are frozen. “We have provided the Korean authorities with the requested assistance. As we cannot comment on LE’s ongoing investigations, for any further comment, please contact prosecutors,” Binance said.
All in all, the South Korean justice intends to continue its investigations. And the stakes are, indeed, too high to let go. As a reminder, nearly 40 billion dollars are involved in the collapse of the stablecoin Terra-Luna.
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