South Korean Authorities Move to Freeze $5.3M in Do Kwon’s Assets

South Korean prosecutors have made moves to freeze the assets of Do Kwon, co-founder of Terraform Labs. The prosecutors are seeking a court order to freeze $5.3 million worth of Kwon’s assets in South Korea. Kwon has been under investigation for fraud and tax evasion since the Terra-LUNA collapse in May 2022.

According to reports, prosecutors are also tracing potential criminal proceeds generated by Kwon overseas and parked in various cryptocurrency exchanges and Swiss bank accounts.

Kwon allegedly consolidated his assets to Bitcoin and transferred them to foreign exchanges like Binance, making it difficult for the authorities to recover them.

Kwon is accused of defrauding investors and making around $69 million from the Terra-LUNA collapse. He became one of the world’s most wanted fugitives, with Interpol issuing a red notice in September 2022. He was arrested in Montenegro in March and is currently facing charges of fraud, securities, commodities, and wire fraud in the U.S. and South Korea.

Last week, authorities froze around $116.5 million worth of assets belonging to Daniel Shin, who co-founded Terraform Labs with Kwon. Shin alone earned over $115 million while Kwon earned $69 million from the collapse, according to the prosecutors.

The legal troubles for Kwon and Shin continue to mount as they face extradition to the U.S. and South Korea. The South Korean authorities claim that Kwon, Shin, and seven other Terraform employees made around $314.2 million by defrauding investors.