According to local authorities, Do Kwon has no seizable assets in South Korea. However, an investigation reveals that Do Kwon and his top associates generated at least $314.2 million from Terra (LUNA). Although the money is not under the jurisdiction of South Korean authorities, Binance reportedly agreed to cooperate with local police to help freeze the funds.
Do Kwon owns only intangible assets
While Do Kwon is currently imprisoned in Montenegro, where he was recently arrested along with his CFO, the various legal investigations are still ongoing. According to the local authorities, Do Kwon does not have any property that can be seized in South Korea.
However, the founder of Terraform Labs is not to be pitied financially. Indeed, a recent investigation reveals that Do Kwon and his senior partners have generated at least 414.5 billion won in profits from Terra (LUNA), which is equivalent to about $314.2 million.
Although he does not appear to have any material assets that can be seized in his homeland, Do Kwon – whose real name is Kwon Do-Hyung – does have some money saved up. Of the total loot associated with the major players in Terraform Labs, the company founder reportedly holds no less than $69 million directly from Terra’s proceeds and the sale of his home.
However, the money is unfortunately not currently under the jurisdiction of the South Korean authorities as the funds have been converted entirely into Bitcoin (BTC) via off-shore exchanges. As such, Binance has reportedly agreed to cooperate with local police to help freeze the funds.
However, the exchange has remained tight-lipped about the matter, merely confirming that it is complying with the authorities’ requests, without specifying how much money was hosted on its platform.
A very uncertain future for the managers of Terraform Labs
As part of the investigation, South Korean authorities have reportedly already seized numerous properties and vehicles belonging to Do-Kwon’s inner circle in order to prevent individuals from trying to hide their funds as Do-Kwon was able to do.
One can only hope that Do Kwon’s arrest will finally unravel the truth about the collapse of Terra, which will have resulted in more than $40 billion in losses for investors, as the project hosted 2 of the 10 most capitalized cryptocurrencies on the market, namely UST and LUNA, which are now worthless.
Do Kwon, who has always pleaded not guilty to the public accusations against him, is said to have caused the collapse himself. As @FatManTerra pointed out last December, Terraform Labs would have massively sold hundreds of millions of USTs a few days before the fall of the algorithmic stablecoin:
This bombshell data, collated by the anonymous researcher @Cycle_22 (who discovered the Hodlnaut insolvency), reveals that TFL suddenly began furiously dumping hundreds of millions of UST only days before the depeg. pic.twitter.com/8r3JvR2IB7
– FatMan (@FatManTerra) December 6, 2022
For the time being, Do Kwon is expected to spend some time in prison in Montenegro before being extradited to South Korea or the U.S.