12. April 2023

Do Kwon Arrested, 7.1B Won in Assets Frozen by South Korea

• South Korea has frozen 7.1 billion Korean won ($5.36 million) in Do Kwon’s assets.
• South Korea and the US have requested Montenegro to extradite Do Kwon on allegations ranging from fraud to securities law crimes.
• Terraform Labs CEO Do Kwon “Do Kwon” Do-hyung is being imprisoned in Montenegro for allegedly travelling using fake travel documents.

South Korea Freezes Assets

The Seoul Southern District Prosecutors’ Office has frozen 7.1 billion Korean won ($5.36 million) in assets belonging to Terraform Labs CEO Kwon “Do Kwon” Do-hyung. According to a spokeswoman for the Seoul prosecutors’ office, a Seoul court is assessing Kwon’s domestic and foreign assets for compensation and will likely restrict him from relocating or selling the listed assets if the case is granted by the court, with sum eventually confiscated following a final guilty verdict from the court.

Assets Overseas

According to a recent report from the South Korean news outlet News1, the frozen assets comprise of deposits in accounts based overseas, including one in Switzerland, where Seoul’s prosecutors have requested judicial cooperation. Legal action is also being taken to collect other related equipment such as computers, hard disks, and other Terraform-related equipment owned by Kwon.

Extradition Requested

Both South Korea and the United States have asked Montenegro authorities to extradite Do Kwon on allegations ranging from fraud to securities law crimes; however he has denied these allegations as politically driven and without merit. On 23 March, he was apprehended at a local airport in Montenegro along with Terraform’s chief finance officer Han Chang-joon using fake travel documents .

Terra USD Implosion

Kwon had been under investigation since last year when stablecoin Terra USD [UST] and its $40 billion ecosystem imploded sending shockwaves across crypto markets contributing to the failure of several firms like crypto hedge fund Three Arrows Capital (3AC).

Conclusion

South Korea has acted swiftly by freezing 7.1 billion Korean won ($5.36 million) of Do Kwan’s assets located both domestically and abroad as well as requested extradition of him on multiple charges while legal actions are underway to confiscate his computers, hard disks, and other related equipment owned by him linked with Terraform Labs implosion incident last year causing distress across many firms including Three Arrows Capital (3AC).