Korean officials tied around 91.4 billion won, worth around $69 million, in digital assets directly to Do Kwon.
South Korean officials continue to grill former Terraform Labs co-founder Kwon Do-Hyung, popularly known as Do Kwon, after he was arrested early last month in Montenegro as he attempted to flee to Dubai. The collapse of Terra Luna and its algorithmic stablecoin UST resulted in a loss of over $40 billion in the crypto market. As a result, the entire cryptocurrency industry capitulated and has never fully recovered since then. Moreover, regulations around the world have not yet been fully implemented to prevent such incidents from existing crypto companies.
Additionally, the collapse of FTX and Alameda Research has significantly tarnished the status of the crypto market.
South Korean Officials on Terra Luna’s Do Kwon
According to recent court revelations, Do Kwon did not have solid real estate that could be seized in South Korea. Nonetheless, South Korean officials have identified approximately 414.5 billion won worth approximately $314.2 million in illicit assets associated with Do Kwon and his associates. Interestingly, Korean officials tied around 91.4 billion won, worth around $69 million, in digital assets directly to Do Kwon.
Apparently, Kwon used overseas cryptocurrency exchanges to convert Terra Luna’s proceeds into Bitcoin. As a result, Korean officials have asked Binance, the largest centralized crypto exchange by daily volume traded, to stop any withdrawals related to Kwon or his associates.
Meanwhile, Binance has confirmed that it is working closely with Korean prosecutors and offering them the necessary assistance.
“We have provided the Korean LE authorities with the requested assistance. Since we cannot comment on ongoing LE investigations, for any further comments, please contact the prosecutors,” Binance noted.
According to a report by a South Korean news outlet, the illicit earnings of Terraform Labs co-founder Shin Hyun-Seong and former CEO Chai amounted to approximately 154.1 billion won. The remaining 7 Terra employees allegedly embezzled a total of 169 billion won from investors.
End of Game
Terraforms Labs investors were forced to reckon with the Luna and UST crash and forced liquidation that may never be recovered. The Terra Luna project morphed into Terra Classic LUNC, which was trading around $0.0001251 on Friday. According to market data provided by Binance-backed Coinmarketcap, Terra Classic LUNC has a reported market capitalization of approximately $737,726,064 and a 24-hour trading volume of approximately $116,073,937.
Nonetheless, community enterprise Terra Classic LUNC has distanced itself from Do Kwon who is wanted in multiple jurisdictions, including Singapore and the United States, on fraud charges.
Currently, it is unclear whether Do Kwon will be imprisoned in South Korea or the United States. However, his arrest and prosecution will be a stern warning to other crypto projects seeking to defraud investors.
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