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 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.
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.