In a recent development, Terra co-founder Do Kwon has reportedly withdrawn 2.8 billion won ($2.15 million) worth of digital assets before his bail was approved by a Montenegro court, according to multiple South Korean media outlets. Kwon, along with former CFO Han Chang-joon, faces court proceedings related to passport forgery and extradition cases. Their assets, valued at $175 million, have been frozen by South Korean prosecutors amidst the ongoing Terra-LUNA crisis.
The withdrawals in question, which include stablecoins worth $400,000 and Terra Classic (LUNC) worth $150,000, came before the court accepted a 400,000 Euro ($436,000) per person bail. These withdrawals took place while South Korean prosecutors were moving to freeze assets belonging to both co-founders, as well as related individuals.
On the other hand, the Montenegrin prosecutor’s office has appealed the court’s decision to grant Kwon’s bail application, citing flight risk due to the low amount of bail compared to the co-founders’ assets. This development raises questions on how the court proceedings will pan out, especially given that Kwon still has millions worth of assets in a Swiss bank.
Meanwhile, Terraform Labs, the company Kwon co-founded with Daniel Shin, transferred 1.8 million Convex Finance (CVX) tokens worth nearly $8.7 million. This move has led to suspicions of misconduct, as an aide of Kwon’s is reportedly behind these withdrawals.
In light of these events, it is crucial to remain cautious when investing in cryptocurrencies. Despite the setbacks faced by Terra Classic (LUNC) and Terra (LUNA), their prices have remained relatively stable. At the time of writing, Terra Classic (LUNC) is trading at $0.000090, down 1% in the last 24 hours, while Terra (LUNA) is trading 1% higher at $0.94.
As the South Korean and U.S. authorities actively seek the extradition of Kwon, the ongoing investigation into the Terra-LUNA crisis further emphasizes the need for increased scrutiny and regulation in the cryptocurrency market. With Terra co-founder Daniel Shin’s trial also on the horizon, the outcome of these legal proceedings will likely have a significant impact on the overall crypto ecosystem.
Whether the withdrawals and transfers by Kwon and his associates are indicative of foul play or simply prudent financial management remains to be seen. The author and the publication do not hold any responsibility for your personal financial loss, and investors are advised to thoroughly research the market before making any cryptocurrency investments.
Source: Coingape
