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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
