Terraform Labs co-founder Do Kwon moved $29 million after arrest

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Terraform Labs co-founder Do Kwon moved $29 million after arrest

Published: 09 Jun. 2023, 16:07

Do Kwon, the cryptocurrency entrepreneur who created the failed Terra (UST) stablecoin, is taken to court in handcuffs, to face charges of forging official documents, in Podgorica, Montenegro, March 24, 2023. [REUTERS/YONHAP]

Disgraced Terraform Labs co-founder Do Kwon moved some $29 million of his assets after he was arrested in Montengro in March, according to Korean prosecutors.

Kwon likely moved the digital tokens himself or personally directed someone to do so, according to Dan Sung-han, director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service, in an interview with Bloomberg News released Thursday.

Dan said Korean authorities are striving to find the location of the assets, which were parked in a crypto wallet that belonged to Kwon’s Luna Foundation Guard (LFG).

LFG is a Singapore-based so-called nonprofit organization that aims to build a decentralized economy.

Kwon and his associates hold more than $13 million at Sygnum Bank, a digital asset bank, Dan said.

Meanwhile, Kwon alleged that he financed Milojko Spajic, the leader of Montenegro’s Europe Now political party, according to media reports Wednesday.

Kwon wrote a letter to outgoing Montenegrin Prime Minister Dritan Abazovic and Justice Minister Marko Kovac that he had provided financial support to the political party.

Spajic denied the allegations, though he admitted to investing in Terra.

The prime minister urged prosecutors to investigate the claims.

BY JIN MIN-JI [jin.minji@joongang.co.kr]