Do Kwon, the co-founder of Terraform Labs, and his colleagues are linked to criminal assets worth 414.5 billion won ($314.2 million) that have been uncovered by South Korean prosecutors. Prosecutors have explicitly connected Kwon to around 91.4 billion won ($69 million) of the discovered unlawful assets.
Although having accumulated millions, none of the assets connected to Kwon are recoverable or under the control of the South Korean government. This is primarily because, according to a report by local media source KBS, the now-arrested former CEO apparently used foreign cryptocurrency exchanges to transfer the majority of the criminal proceeds into Bitcoin instead of investing in tangible assets.
The United States Securities and Exchange Commission’s preliminary examination into the Terra collapse found that Kwon stole almost $100 million worth of Bitcoin from Terra after the company had collapsed. Kwon was charged with embezzling $80 million a month before the Terra ecosystem collapsed in another story based on an SEC interview with former Terraform Labs employees that was released in South Korean media.
Binance has been asked by the South Korean government to stop processing any withdrawal requests related to Kwon.
