The collapse of Terra in May of last year shook the cryptocurrency world. This once-promising ecosystem suffered a devastating drop in value, plummeting from $40 billion to almost nothing.
An investigation found that the former CEO, Do Kwon, was at the center of a massive fraud scheme. Since then, authorities in South Korea have been working to recover criminal funds connected to Kwon and his associates.
Unfortunately, these efforts have hit several obstacles. The vast majority of Kwon’s assets seem to be unrecoverable, as the former CEO apparently converted them to Bitcoin using offshore cryptocurrency exchanges.
Despite these challenges, prosecutors have identified 414.5 billion won ($314.2 million) in illicit assets linked to Kwon, including almost $70 million directly tied to the former leader.
Do Kwon Ordered To Stop Liquidating Millions In Crypto
Recently, South Korean authorities have taken strict action against Do Kwon, a former executive at Terra, a cryptocurrency platform. The authorities have asked Binance, the world’s largest cryptocurrency exchange, to block Kwon’s related wallets to prevent him from withdrawing any money. In addition, prosecutors have confiscated the assets of former Terra executives to prevent them from selling any asset that may be associated with legal issues.
Although an arrest warrant and Interpol red notice were issued against him, Kwon could evade authorities for almost a year before being arrested in Montenegro on March 23. However, he may face passport fraud charges in Montenegro, which could hamper South Korea’s efforts to extradite him.
The United States and South Korea have sought his extradition, and Kwon faces criminal charges in both countries. The situation remains uncertain as the extradition process is still ongoing.
What Does Red Pole Notice State?
Interpol Red Notice is a serious alert that law enforcement worldwide receives when someone is wanted for extradition or prosecution by a national jurisdiction. This notice is one of the highest and most urgent alerts issued by Interpol and is only issued at the request of a member nation.
What’s in this alert, you ask? It includes the name and photo of the person being sought and a description of the suspected crime they’re accused of. If a Red Notice is issued, member nations of Interpol can take action to capture and extradite the individual.
But here’s the thing: a Red Notice isn’t the same as an arrest warrant. It doesn’t force member nations to apprehend the individual but is a powerful tool for international law enforcement cooperation.
Terra’s Demise And The Struggle Of Its Redesigned Network
The impact of Terra’s downfall has been felt across the cryptocurrency industry. Despite redesigning the Terra 2.0 network, it has not garnered much attention, resulting in the LUNA coin being sold at a mere $1.27, significantly lower than its previous high of around $20.
Furthermore, the original Terra coin has undergone a rebranding process and is now known as Terra Luna Classic, with the abbreviation LUNC. Its current market value is a meager $0.00012, starkly contrasting its past performance. The Terra stablecoin has been relaunched as Terra Classic USD (USTC), but it is also facing extinction with a value of only $0.02.
The recent Terra crash and subsequent investigation have highlighted some risks associated with the cryptocurrency market. The efforts of South Korean officials to recover stolen funds from Do Kwon and his cohorts demonstrate their determination to crack down on fraud and other related criminal activity.
However, their challenges in this pursuit underscore the necessity for greater regulation and oversight in the cryptocurrency sector.