Terraform Labs co-founder, Do Kwon, is reportedly under investigation by South Korean prosecutors for allegedly converting a “large part” of his assets into Bitcoin. This news comes after Terraform Labs suffered a $40 billion wipeout in May 2022, causing Do Kwon to lose almost all of his net worth.
In a recent interview with The Wall Street Journal, Do Kwon revealed that the crash didn’t bother him as he lived a “fairly frugal life.” However, according to a report by South Korean news publication KBS, prosecutors are now investigating Do Kwon’s alleged Bitcoin conversion.
South Korean Prosecutors Take Action
According to sources, the total amount involved in Terra’s alleged crimes is $314 million, with Do Kwon’s alleged involvement amounting to $69 million. Prosecutors are reportedly investigating whether Do Kwon converted a significant portion of his assets into Bitcoin and transferred them to exchanges.
Furthermore, South Korean prosecutors have asked Binance to stop Do Kwon from withdrawing his alleged profits from Terraform Labs. However, it’s important to note that these reports are still unverified, and further information is needed to confirm the allegations.
