Former co-founder of Terraform Labs, Do Kwon, has found himself at the center of serious allegations of financial fraud and violation of capital market laws. In February, the SEC accused Kwon and Terraform Labs of transferring over 10,000 bitcoins and converting tokens into cash through a Swiss bank. Detecting these transactions proved to be a challenging task as the funds were stored in a cold wallet, beyond the reach of cryptocurrency exchanges.
South Korea has also filed charges against Kwon for violating capital market laws. South Korean prosecutors have placed an arrest warrant for 246.8 billion won and seek to gain control over an additional 31.6 billion won. Kwon claims that the allegations are unfounded assumptions and denies his involvement.
Currently, the commencement of legal proceedings and a decision regarding Kwon’s extradition to South Korea or the United States are pending.
Do Kwon arrives at a court in Montenegro, on May 11.
