The Great Crypto Heist: How Kwon Built His Kingdom
In a plot twist worthy of a Hollywood blockbuster, Do Kwon, co-founder of Terraform Labs, has been identified by South Korean prosecutors as the mastermind behind an illicit empire totaling a staggering 414.5 billion won (around $314.2 million). This figure isn’t just for show; roughly 91.4 billion won (about $69 million) can be traced directly back to Kwon himself. The catch? None of these assets are within reach of the South Korean authorities because they’ve been transformed into Bitcoin and tucked away in foreign exchanges. Talk about a disappearing act!
Bitcoin: The Modern Getaway Vehicle
Kwon has outsmarted the law by converting his illicit fortunes into Bitcoin (BTC), using overseas exchanges like it’s some sort of magical vault. Instead of buying shiny houses or flashy cars, Kwon decided to invest in a digital escape plan. According to a local media outlet, KBS, the bulk of his assets are as recoverable as your old childhood toys—lost in the beach sand of forgotten years.
Before the Fall: SEC’s Eye on Kwon
Not long ago, the United States Securities and Exchange Commission (SEC) caught wind of Kwon’s shenanigans. Early investigations revealed a jaw-dropping revelation: Kwon had funneled nearly $100 million worth of Bitcoin out of Terra after its monumental collapse. And it wasn’t a lone act of desperation; weeks earlier, he allegedly siphoned another $80 million. If you thought money just walks away, think again! Kwon seems to have pulled off quite the heist.
Prosecutors in Action
As the dust settled on the Terra collapse, South Korean authorities sprang into action, requesting Binance to freeze any withdrawal requests linked to Kwon’s assets. Binance, ever the diplomatic crypto exchange, confirmed they’re assisting with the investigation—no one wants to be caught in the crossfire of a prosecutor’s wrath!
A Seizure of Assets
In a bid to reclaim some of the losses from the Terra fiasco, prosecutors seized properties and vehicles, aiming to stop the former Terra staff from liquidating assets related to their legal troubles. Foreclosure actions were filed against various assets, including residences in Seoul and fancy foreign cars. If that’s not the ‘who’s who’ of getting caught, what is?
The Collapse: Lessons from Terra
Before its spectacular plunge, Terra was a beacon of promise in the crypto world. But in May 2022, it took a nosedive, sinking a $40 billion ship along the way. What steps were taken in the lead-up? Disturbing data emerged, revealing that just weeks before the TerraUSD (UST) stablecoin depegged, a single entity dumped a hefty $450 million worth of UST on the open market. Surprise, surprise—this entity was none other than Terraform Labs themselves!
The Finger-Pointing Game
In the aftermath, while Kwon and his crew tried to sell the tale that UST was ‘attacked,’ the evidence suggested otherwise. Industry insiders alleged Kwon’s team weakened the liquidity pool through irresponsible trading practices, leading to their eventual downfall. FatMan, a notable figure in the crypto community, even labeled the situation a “false flag.” Now, the real question remains: when will the drama end for Kwon? Despite an Interpol red notice and a South Korean warrant for his arrest, he played hide-and-seek for nearly a year until authorities finally caught up with him in Montenegro on March 23, 2023.
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