Terra Co-founder’s Legal Battle: Crypto Transfers, Shell Companies, and Political Ties Unraveled

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South Korean prosecutors continue to scrutinize Terra co-founder Do Kwon as they allege his involvement in the transfer of cryptocurrency worth millions through a shell company connected to Terra since his arrest in March. The Montenegro High Court is expected to decide on the bail request for Do Kwon and former CFO Han Chang-joon this week while questions about Do Kwon’s links to former Finance Minister and President of the Europe Now political party, Milojko Spajić, emerge as well.

On June 8, Director of the Seoul Southern District Prosecutors’ Office, Dan Seong-han, announced that Do Kwon had transferred crypto assets valued at $29 million. Seong-han suspects that someone under Do Kwon’s direction moved the funds to another wallet, not Sygnum, and cashed out elsewhere. The authorities are currently investigating the whereabouts of the transferred crypto assets associated with Luna Foundation Guard (LFG). Furthermore, they have discovered that Do Kwon and affiliated parties still hold over $13 million at Swiss-based Sygnum Bank AG.

As a result of the Terra investigations, 10 people, including co-founder Daniel Shin, have been indicted for violating laws. Notably, South Korean authorities are tracking transactions in addition to those involving 10,000 Bitcoin transferred by Terraform Labs and Do Kwon to a Swiss bank account as mentioned in the US SEC complaint from February. In April, around $100 million in fiat currency was cashed out from the Swiss bank, with more than 70% of it sent to the Kim & Chang law firm for legal fees.

Adding to these developments, Montenegro prosecutors continue to appeal against a court ruling in an ongoing passport forgery case. They believe that Do Kwon and Han Chang-joon must remain in custody, with a decision on the appeal expected from the Montenegro High Court.

In a recent twist, Montenegro Prime Minister Dritan Abazović received a handwritten letter from Do Kwon alleging his financial contributions to the Europe Now political party. Do Kwon has been connected to former Finance Minister Milojko Spajić since 2018, who currently serves as the president of the same political party.

With many sides to the story, it remains uncertain how the case will unfold. Nevertheless, investors and crypto enthusiasts will keep a keen eye on this evolving situation, given its potential implications on the crypto industry as a whole. As always, it is crucial to conduct thorough market research before making any investment decisions.

Source: Coingape

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