von • South Korean prosecutors have identified 414.5 billion won ($314.2 million) in illicit assets associated with Terraform Labs co-founder Do Kwon and his associates.
• Out of the identified illegal assets, prosecutors have linked about 91.4 billion won ($69 million) of the specified amount directly to Kwon.
• South Korean authorities have requested Binance to halt any withdrawal request associated with Kwon, and Binance has confirmed that they are cooperating with the prosecutors and offering any assistance they need.
Do Kwon Involvement in Illicit Funds
South Korean prosecutors have identified 414.5 billion won ($314.2 million) in illicit assets associated with Terraform Labs co-founder Do Kwon and his associates. Out of the identified illegal assets, prosecutors have linked about 91.4 billion won ($69 million) of the specified amount directly to Kwon.
Converting Funds into Bitcoin
Although Kwon amassed millions, none of the assets tied to him are recoverable or under the jurisdiction of the South Korean authorities because he reportedly converted most of the illicit funds into Bitcoin BTC $27,931 using overseas crypto exchanges instead of investing in physical assets, per a report published by local media outlet KBS. Early investigation into the Terra collapse by the United States Securities and Exchange Commission revealed that Kwon siphoned nearly $100 million worth of Bitcoin from Terra post-collapse; In another report based on an SEC interview with former Terraform Labs, published in South Korean media, it was accused that Kwon had siphoned $80 million a month before the collapse of its ecosystem.
Requesting Binance To Stop Withdrawal Requests
The South Korean authorities have requested Binance to halt any withdrawal request associated with Kwon; Binance has confirmed that they are cooperating with the prosecutors and offering any assistance they need saying: „We provided Korean LE authorities with the requested assistance. Since we cannot comment on ongoing LE investigations, for any further comment please reach out to the prosecutors.“
Seizing Assets To Recover Funds
South Korean prosecutors are actively tracing properties associated with Terraform Labs executives to recover some illicit funds from its debacle; On April 3rd 2021 ,prosecutors seized homes and other assets to stop former Terra employees from selling things that might be tied to legal cases .
Conclusion
The ongoing investigation presents yet another example where cryptocurrencies can be used as a means for fraudsters and criminals looking for ways to launder money without detection; It also shows how difficult it is for law enforcement agencies around world to track crypto related crimes due their decentralized nature .
