South Korea Freezes $176 Million in Assets of Major Crypto Criminal

The Seoul District Court has reportedly complied with prosecutors’ request to freeze 233.3 billion South Korean won in assets (approximately $176 million) owned by the notorious co-founder of Terraform Labs, Do Kwona. In addition to cryptocurrencies, authorities have blocked his access to his home in southern Seoul, a studio apartment in Nonhyun-dong, luxury cars, and some cash deposits.

Prosecutors have also insisted on Kwon’s extradition to South Korea to face justice for his alleged role in the infamous Terra crash that affected numerous investors last year. If convicted in his home country, he could face a maximum prison sentence of 40 years.

More Trouble for Kwon

As reported by local media, Korean judges froze the aforementioned assets to prevent the 31-year-old developer from selling them before the upcoming trial, which will determine whether he acquired them through criminal activities.

The assets worth nearly $176 million consist of cryptocurrencies, luxury vehicles, real estate in Galleria Forêt, a studio in the upscale residential area of Nonhyun-dong, securities in the brokerage firm Mirae Asset, and cash deposits in Woori Bank.

It is important to note that Kwon also owns other items that the Southern District Court in Seoul has not frozen.

The founder, who was reportedly on the run for several months immediately after the collapse of Luna and UST, was finally arrested in Montenegro in mid-March this year. He is currently in prison in Montenegro.

Extradition to the U.S. or South Korea seems most likely. He could be sent to prison for over 100 years if convicted in the United States, while the maximum penalty in his home country would be 40 years.

Kwon’s Cunning Maneuvers

The collapse of Terra’s native token, Luna, and the algorithmic stablecoin, UST, a year ago caused investor losses of billions of dollars and triggered shocks throughout the crypto industry. Nevertheless, Kwon, accused of being the main culprit behind the crash, managed to stay under the radar of law enforcement and regulators for several months.

He reportedly used numerous nations, including UAE, Russia, Mauritius, Singapore and others, as hideouts. Several sources indicated in late 2022 that Kwon might relocate to Europe, particularly Serbia.

He was arrested three months later in another Balkan state, Montenegro. Interestingly, the arrest occurred at the airport in the capital Podgorica while Kwon was carrying a forged Costa Rican passport, a move suggesting his next destination could have been a Central American country.

Although Kwon was quite active on Twitter during the peak of his project, he has recently minimized his activity. In one of his last posts in November last year, he promised to organize a conference and reveal his hiding location, stating that police could attend the event.

However, he never fulfilled that promise.