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Crime and Investigations

Do Kwon Investigated for Fraud and Tax Evasion

Do Kwon Investigated for Fraud and Tax Evasion

According to a report by Yonhap News on April 11, prosecutors in South Korea are seeking a court order to freeze assets worth $5.3 million belonging to Do Kwon.

Terraform Labs’s co-founder is under investigation for fraud and tax evasion in South Korea after the Terra (LUNA) collapse in May 2022, which wiped out almost $40 billion in market value.

Prosecutors are also investigating Kwon’s potential criminal proceeds parked in various cryptocurrency exchanges and Swiss bank accounts overseas.

Prosecutors claim that Kwon converted his assets to Bitcoin (BTC) and transferred them to foreign exchanges like Binance.

The authorities have already frozen $116.5 million worth of assets belonging to Daniel Shin, Terra’s co-founder. South Korean authorities allege that Kwon, Shin, and seven other Terraform employees defrauded investors of approximately $314.2 million.

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Following his arrest, US authorities have charged Do Kwon with eight counts of fraud, encompassing securities, commodities, and wire fraud.

As a result, both the US and South Korea are seeking his extradition. Meanwhile, Daniel Shin, remains free, as a South Korean court rejected the prosecutor’s request for an arrest warrant in March for the second time.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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