South Korea Freezes Do Kwon’s $176 Million Worth Assets

Coingapestaff
May 10, 2023
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Terra Founder Do Kwon South Korea Extradition Delayed

South Korean prosecutors have frozen assets worth US$176 million belonging to Kwon Do-Hyung, CEO of Terraform Labs, over allegations that he defrauded investors in the Terra-Luna project and related decentralized finance services. This comes just before the court hearing for Kwon’s travel document forgery charges in Montenegro is set for May 11.

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Do Kwon Assets Frozen

The assets include Kwon’s Seoul residence, real estate, imported cars, securities deposited with Mirae Asset Securities, deposits with Woori Bank, and crypto assets in cryptocurrency exchanges. Authorities also alleged that Kwon and Terraform serviced unregistered financial securities.

The court’s decision means Kwon cannot move or sell the assets and properties equivalent to the amount of his alleged illegal profits, which will be confiscated following a guilty verdict.

The director of Seoul Southern District’s joint financial crimes team told The Wall Street Journal last week that Kwon could face over 40 years in prison if convicted, the heaviest sentence given to a financial crime in South Korea’s history.

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Charges Against Terra Founder

The Terra founder is facing charges of orchestrating a cryptocurrency fraud both in the US as well as South Korea. He was arrested on March 23, 2023, in Podgorica, Montenegro.

Kwon has denied all the allegations against him, stating that mistakes were made in the Terra-Luna crypto project managed by his Terraform Labs, but they were not designed to deceive investors. However, according to the latest reports, there have been incidents that prove Kwon knew beforehand about the collapse of the network.

Eyes are on the court hearing in Montenegro for Kwon’s travel document forgery charges that will take place tomorrow. Overall, with this move, it appears that the South Korean authorities are taking a strong stance against white-collar crimes in the country.

 

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.