Terra Co-founder’s Legal Troubles Deepen

Since his arrest by Montenegrin authorities in March, South Korean prosecutors allege that Do Kwon has transmitted crypto worth millions through a shell company or dummy company linked to Terra.

This week, the Montenegro Supreme Court will rule on the parole request of Do Kwon and former CFO Han Chang-joon, as prosecutors have appealed the Montenegro Basic Court’s decision to grant bail.

In addition, Do Kwon’s relations with former Finance Minister and Europe Now party president Milojko Spaji have raised questions.

The Director of the Seoul Southern District Prosecutors’ Office, Dan Seong-han, stated on June 8 that Terra co-founder Do Kwon or an affiliate transmitted $29 million worth of crypto assets.

“We’re assuming that Do Kwon, or someone under his direction, took out the amount and moved it to another wallet, not to Sygnum, and cashed it out somewhere else.”

Prosecutors in South Korea are also investigating the whereabouts of crypto assets transmitted from a wallet associated with Luna Foundation Guard (LFG).

Moreover, according to Dan Seong-han’s investigation, Do Kwon and its affiliates retain over $13 million at the Swiss bank Sygnum Bank AG.

On the basis of Terra’s investigations and violations of the law, ten individuals, including Terra co-founder Daniel Shin, have been indicted.

The crypto assets being monitored by South Korean authorities are in addition to the 10,000 Bitcoin transferred to a Swiss bank account by Terraform Labs and Do Kwon, which was mentioned in a February SEC complaint.

Do Kwon withdrawn approximately $100 million in “fiat currency” from a Swiss bank in April. More than 70% of it was transmitted to the law firm Kim & Chang to pay legal fees.

In May, it was reported that Do Kwon withdrew digital assets worth $2.15 million and Terraform Labs transferred nearly $8.7 million worth of Convex Finance (CVX) tokens.

Prosecutors in Montenegro filed a second appeal against the court’s decision in the ongoing passport falsification case.

Do Kwon and Han Chang-Joon, according to the prosecution, must remain in detention. The highest court in Montenegro will decide the appeal.

Do Kwon has sent a handwritten letter to Dritan Abazovi, the prime minister of Montenegro, asserting that he financed the Europe Now political party.

Since 2018, he has maintained ties with former Finance Minister Milojko Spaji, the president of the political party Europe Now.