If we are to believe South Korean prosecutors, Do Kwon has converted Luna’s stolen money into bitcoin. Authorities are now even asking Binance to stop withdrawals that may be related to Do Kwon. In total, authorities link $69 million in stolen money to Do Kwon.
Who is Do Kwon?
Do Kwon is a South Korean entrepreneur and co-founder of Terraform Labs, the company responsible for developing the Terra blockchain and stablecoin UST, among others. Terra managed to reach a market value of $40 billion in a short period of time before the project went horribly wrong.
In May 2022, the Earth imploded and lost $40 billion in capital, most of it attributable to Do Kwon. Initially, people thought it was a market failure, but it later turned out that Terraform Labs (Do Kwon) had dumped millions of UST on the market.
This was ultimately the reason for the implosion of the project. Even if it is still questionable whether an algorithmic stablecoin that is not backed by collateral has any chance of survival. You would say no purely on feeling and intuition.
undetectable
South Korean authorities are finding it difficult to seize Do Kwon’s assets because he converted most of them into bitcoin. For this, he mainly used foreign cryptocurrency exchanges instead of investing the capital in real assets, reports the South Korean KBS.
Binance has already confirmed that it has received a request from South Korean authorities to block Do Kwon transactions. They try to help the authorities as much as possible to keep the capital of Do Kwon on board and under control.
Do Kwon himself was caught on the run by South Korean authorities after nearly a year. On March 23, 2023, he was arrested in Montenegro. There he tried to catch a flight to Dubai with false documents, which ultimately failed.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
