Do Kwon, the former CEO and co-founder of Terraform Labs, is facing legal troubles in both South Korea and the U.S. for his involvement in the Terra Luna blockchain project.
$176 Million of Former Terraform Labs CEO Do Kwon’s Assets Frozen
Do Kwon, the former CEO and co-founder of Terraform Labs, is facing legal troubles in both South Korea and the U.S. for his involvement in the Terra Luna blockchain project. According to a report by Hankyung, a South Korean news outlet, on May 10, Kwon has more than $176 million worth of assets frozen by a Seoul court order. These assets include real estate, cars and cryptocurrencies.
The court's decision is based on the suspicion that Kwon obtained his wealth through criminal activities related to Terra Luna, a dual-token ecosystem that collapsed in May 2022 after its stablecoin TerraUSD lost its peg. The incident wiped out about $40 billion in market value and triggered investigations by South Korean and U.S. authorities.
Kwon was arrested in Montenegro in March 2023 and is currently awaiting extradition. He is accused of falsifying documents and fraudulently promoting Terra Luna to investors. South Korean prosecutors claim that Kwon converted illegal funds from Terra Luna's native token, now LUNC, to Bitcoin and have traced $314.2 million in unlawful assets. In the U.S., Kwon faces eight counts of fraud charges that could result in up to 160 years in prison.
