- Stablecoins worth $400,000 and LUNC worth $150,000 were allegedly removed from accounts maintained by Terra co-founder Do Kwon.
- Prosecutors in Montenegro filed an appeal against the earlier court decision to release Kwon and Han Chang-Joon on bail.
According to KBS News, Terra co-founder Do Kwon allegedly took 2.8 billion won ($2.15 million) in digital assets before his bail was allowed by a Montenegrin court on May 18.
Stablecoins valued at $400,000 and Terra Classic (LUNC) valued at $150,000 were allegedly removed from wallets owned by Terra co-founder Do Kwon.
On May 12, a Montenegrin court allowed 400,000 Euro ($436,000) per person bail for Do Kwon and former CFO Han Chang-joon. Both will be held under house detention until the court procedures on the passport forgery case are concluded, followed by the extradition process.
The prosecutor’s office in Montenegro has challenged the court’s decision to accept Do Kwon’s bail application, claiming flight danger since the bond sum is significantly less than their assets. The withdrawals are taking place as South Korean authorities try to freeze Do Kwon’s and connected persons’ assets. Prosecutors froze assets and luxury things totaling more than $175 million. These withdrawals are said to be the work of a Do Kwon’s aide.
Terraform Labs, co-founded by Do Kwon and Daniel Shin, previously transferred Convex Finance (CVX) tokens. Terraform Labs deposited 100 CVX tokens to the wallet address 0x15A5, according to Etherscan data. That was followed by another large payment of 1.83 million CVX valued at $8.7 million to wallet address 0x15A5. The wallet presently stores Convex CRV (cvxCRV) tokens rather than CVX tokens.
Montenegrin officials detained Kwon and Chang-Joon in March 2023 at Podgorica airport for allegedly using fraudulent passports. Their passports were already seized in South Korea. Kwon and Terraform Labs’ Terra ecosystem disintegrated in 2022 when its native TerraUSD (UST) stablecoin depegged, wiping out an estimated $40 billion in market value in days.
Nevertheless, Do Kwon still has assets worth millions of dollars in a Swiss bank. South Korea and the United States are aggressively pursuing Terra’s co-extradition founder after he was apprehended in Montenegro after being on the run for many months. Meanwhile, South Korean authorities are continuing their probe into the Terra-LUNA scandal while simultaneously preparing for the trial of co-founder Daniel Shin.
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