3 - 5 minute read
Terraform Labs CEO and co-founder Do Kwon, who has recently been arrested and is currently being held in Montenegro, reportedly converted all of his assets in South Korea to Bitcoin (BTC) shortly before his arrest, according to a report by The Daily Hodl. This has left the South Korean authorities with no assets to freeze belonging to the disgraced crypto executive.
Prosecutors have reportedly been tracking the domestic wealth of Terraform Labs executives to collect the profits that they’ve allegedly accumulated from the Terra (LUNA) ecosystem. Kwon and his associates reportedly acquired a total of $314.2 million, with the Terraform Labs CEO holding $69 million of the funds.
South Korean authorities have already frozen the properties of Terraform co-founder Shin Hyun-seong and others. However, they were not able to freeze any of Kwon’s assets because he appears to have converted most of his properties into Bitcoin and sent the crypto stack to an exchange outside of South Korea.
Says a prosecution official according to KBS, “It has been found that there is very little property formed and owned by CEO Kwon in the country.”
South Korean authorities issued a warrant for Kwon in September following the collapse of LUNA and UST in May 2022. He went on the run but was arrested at the Podgorica Airport in Montenegro last month while attempting to board a flight to Dubai using a fake Costa Rican passport.
What this Means for Traders?
This news is important for traders in the crypto market, especially those interested in Terra (LUNA), as it could have an impact on the asset’s price. Kwon’s reportedly large holdings in the Terra (LUNA) ecosystem could have influenced the market in the past, and his sudden unloading of his assets could lead to increased volatility in the near future.
It also highlights the importance of due diligence for investors in the crypto market. The fact that Kwon was able to convert his assets into Bitcoin and send it to an exchange outside of South Korea shows the level of complexity involved in tracking down crypto assets, especially those involving a large sum of funds.
This news serves as a reminder to investors to do their own research and be cautious with their investments in the crypto market.
The arrest and subsequent revelations regarding Do Kwon’s assets could have far-reaching consequences for the crypto market. This news serves as a reminder to traders and investors of the importance of carrying out their own research before investing in any asset. It highlights the complexities involved in tracking down crypto assets, especially when they involve large sums of funds. It remains to be seen how Kwon’s arrest and unloading of assets will impact the crypto market and the price of Terra (LUNA), but this is definitely an issue in the market that traders should keep a close eye on.