The downfall of Terra in May last year stunned the cryptocurrency community. Terra, once a promising ecology, saw its value drop from $40 billion to nearly nothing.
According to investigations, former chief executive Do Kwon was at the core of a vast fraud conspiracy. Since then, South Korean authorities have been attempting to collect criminal funds linked to Kwon and his friends.
Unfortunately, the officials have encountered a number of roadblocks in their efforts. The majority of Kwon’s assets are unrecoverable, as the former CEO allegedly changed them into Bitcoin utilizing offshore crypto exchanges.
Despite this, prosecutors have discovered 414.5 billion won ($314.2 million) in unlawful assets tied to Kwon, of which nearly $70 million is directly linked to the former top honcho.
Meanwhile, South Korean officials have notified Binance, the world’s biggest cryptocurrency exchange, to prohibit Do Kwon from extracting any cash. They have asked Binance to freeze all wallets related to Kwon.
Furthermore, prosecutors have seized former Terra executives’ residences and other assets in order to prevent them from selling an asset that may be linked to legal matters.
Despite an arrest warrant and an Interpol red notice against his name, Do Kwon eluded capture for nearly a year before being apprehended in Montenegro on March 23 while attempting to travel using forged passports?
But, he may face charges in Montenegro for passport fraud, which could stymie South Korea’s extradition efforts.
Both South Korea and the United States have requested his extradition, and Do Kwon is facing criminal accusations in both countries.