As a report as it, Do Kwon, the founder of Terra (LUNA), moved tens of millions of dollars worth of digital assets away from Luna Foundation Guard’s (LFG) wallet after his arrest in March this year.
According to a report from Bloomberg, South Korean prosecutors, who have been working to trace the missing crypto assets, said Kwon possibly moved $29 million worth of crypto by himself or someone did it on his behalf.
The report reads in part:
“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. We are tracking it.”
Kwon was first arrested in Montenegro in March after attempting to board a flight to the United Arab Emirates (UAE) with a Costa Rican passport, which authorities say was allegedly forged. Kwon pleaded not guilty in May in a Montenegro court to charges of forging travel documents.
Authorities in both the United States and South Korea want to extradite the Terra founder, who is facing multiple charges arising from the $40 billion crash of the Terra ecosystem stablecoin TerraUSD (UST) and the crypto asset Terra (LUNA) now renamed Terra Classic (LUNC).
Kwon claimed on Twitter in February that he’d “stolen no money and never had ‘secret cashouts.’” He also said he was “happy to address any specific allegations” – though it remains unclear if he’s ever addressed the allegations in any public forum.
I find that Twitter is a good place for rumors but poor place to get facts
I've stolen no money and never had "secret cashouts" – happy to address specific allegations
In any case, good day to you
— Do Kwon 🌕 (@stablekwon) February 1, 2023
Dan Sunghan, director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service, informed Bloomberg that Kwon could serve more than 40 years in prison if found guilty of the charges.