Dan Sunghan – Director of the Financial Crime Investigation Bureau at the Seoul Southern District Prosecution Service – claimed that the former crypto mogul Do Kwon had moved nearly $30 million in digital currencies to an unknown wallet shortly after his arrest in Montenegro.
The 31-year-old South Korean has faced huge criticism and was blamed for having a hand in the massive LUNA/USD collapse last year that triggered multi-billion investor losses. He allegedly spent several months on the run before being detained by the authorities of Montenegro in March this year. Chances are high that he will be extradited to the USA or South Korea and face justice there.
Kwon’s Suspicious Crypto Dealings
According to Sunghan, Terraform Labs’ Co-Founder – Do Kwon, or someone from his inner cycle transferred the crypto stash from a wallet belonging to the Luna Foundation Guard (LFG) after the arrest and later cashed it out. The prosecutor said the magistrates are trying to detect where the moved funds ended up:
“We’re assuming that Do Kwon, or someone under his direction, took out the amount and moved it to another wallet, not to Sygnum, and cashed it out somewhere else.”
This is not the first time Kwon’s name has been connected with perplexing transfers. The US Securities and Exchange Commission (SEC) suggested earlier this year that he cashed out 10,000 bitcoin shortly after the Terra crash. The regulator claimed he used an unnamed Swiss bank to conduct the transaction.
Another recent report indicated that the developer sent 9 billion won (nearly $7 million) to the law firm Kim & Chang before the LUNA/USD fallout. Nonetheless, attorneys from the company refused to shed additional details on the matter, saying:
“We are unable to provide specifics on individual cases. We have conducted our legal advisory services as usual and have legitimately received the fee for the services.”
Kwon’s Unknown Future
Blamed by numerous agencies, watchdogs, and fallen investors as the main culprit behind the Terra collapse, Kwon didn’t help his case as he failed to cooperate with the relative authorities on solving the issue. Instead, he escaped his homeland and supposedly swapped multiple destinations in the past year, including the UAE, Mauritius, Seychelles, Russia, and more.
Several sources reported at the end of 2022 that he popped up in Europe, specifically Serbia. The hunt was so intense that it even grabbed the attention of Interpol, which issued a red notice for him.
Despite his successful maneuvers from law enforcement agencies, Kwon was finally detained in the Balkan country of Montenegro in March. His arrest happened at the airport in the capital Podgorica while he was carrying a falsified passport, hinting that he was about to move to another nation.
The South Korean spent some time in a local correctional facility before applying to be released on a $440K bail. The request was initially denied by a high court in Montenegro but later approved by the Basic Court of Podgorica.
Still, his problems seem far from over. The United States and South Korea have both insisted on Kwon’s extradition. Should he be found guilty in America, he could spend over 100 years in jail, while the maximum sentence in his homeland could be 40 years.
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