Prosecutors uncover $314 million linked to TerraForm Labs and Do Kwon

South Korea’s prosecutors uncovered illicit assets linked to TerraForm Labs (TFL) totaling 414.5 billion KRW (~$314.2 million), including 91.4 billion KRW (~$69 million) belonging to its founder Do Kwon. KBS News.

Part of the CEO’s funds were sent to Binance. Prosecutors asked the platform to stop withdrawals of TFL-linked funds. The exchange’s representatives confirmed Cointelegraph that they are cooperating with the prosecutors.

According to the report, the CEO, who is under investigation, transferred LUNA into Bitcoin and used overseas platforms, complicating the prosecutors’ efforts to recover the funds.

According to the suit SEC against TFL and Do Kwon, the defendants moved more than 10,000 BTC from Terraform and Luna Foundation Guard accounts to cold wallets.

Since May 2022 the co-founder and the company “periodically” sent these funds to a Swiss-based financial institution and converted them into cash. In total they withdrew more than $100 million in fiat.

In June the media reported that the SEC questioned company employees and found that, months before Terra’s collapse, Do Kwon began moving around $80 million monthly to dozens of cryptocurrency wallets.

On 3 April 2023, the financial crimes investigation unit of the Seoul Southern District Prosecutors’ Office seized the assets of early investors and TFL employees, including its co-founder Daniel Shin, for a total of around $205 million. The proceedings affected real estate, vehicles and exchange assets.

Earlier, South Korean authorities issued an arrest warrant for Do Kwon and five other company employees. In October 2022 law enforcement carried out the first arrest, but the court did not detain the company employee.

On March 23, 2023 Montenegro police arrested Do Kwon, who was attempting to fly from Podgorica airport to Dubai using forged documents.

The arrest occurred at the request of law-enforcement authorities of the United States, Singapore and South Korea. Earlier, media citing Seoul prosecutors reported that he is hiding in Serbia.

On March 29 it became known that Do Kwon will appear before a court in Montenegro prior to extradition.

U.S. federal prosecutors filed eight-count charges against the TFL co-founder.