Terra founder Do Kwon invites more trouble, million in assets to be frozen
- South Korea will freeze 7.1 billion Korean won (US$5.36 million) in Do Kwon’s assets
- Do Kwon was arrested in Montenegro for travelling with fake documents.
According to a recent Forkast news report, the Seoul Southern District Prosecutors’ Office has frozen 7.1 billion Korean won ($5.36 million) in assets belonging to Terraform Labs CEO Kwon “Do Kwon” Do-hyung.
According to a spokeswoman for the Seoul prosecutors’ office, a Seoul court is assessing Kwon’s domestic and foreign assets for compensation.
The Seoul Southern District Prosecutors’ Office earlier told Forkast that Kwon had “zero” recognizable assets in South Korea. However, the representative would not clarify on how much of Kwon’s assets in South Korea were included in the 7.1 billion won.
South Korea will likely restrict Kwon from relocating or selling the listed assets if the case is granted by the court. The sum will be confiscated following a final guilty verdict from the court.
Moreover, according to a recent report from the South Korean news outlet News1, the assets comprise the Terra founder’s deposits in accounts based overseas, including one in Switzerland, where Seoul’s prosecutors have requested judicial cooperation. Legal action is also being taken to collect Kwon’s computers, hard disks, and other Terraform-related equipment.
South Korea and the US request Montenegro to extradite Do Kwon
Both South Korea and the United States have asked Montenegro authorities to extradite Do Kwon on allegations ranging from fraud to securities law crimes. Kwon and Terraform Labs have repeatedly said that the allegations are without merit and are politically driven.
Kwon, along with Terraform’s chief finance officer Han Chang-joon, is being imprisoned in Montenegro for allegedly travelling using fake travel documents. On 23 March, they were apprehended at a local airport in Montenegro.
Kwon has been the target of several investigations and was even on Interpol’s red notice after stablecoin Terra USD [UST] and its $40 billion ecosystem imploded last year, sending shockwaves across the crypto markets. The debacle contributed to the failure of several firms like the crypto hedge fund Three Arrows Capital (3AC).