Binance Aids South Korea to Seize Do Kwon’s Crypto Assets

Leading cryptocurrency exchange Binance has cooperated with South Korean regulators to freeze crypto assets owned by the infamous Terraform Labs CEO and founder, Do Kwon. It is part of a more significant effort to cripple the finances of the embattled CEO.

Binance Freezes Kwon-Linked Assets

Do Kwon had reportedly converted all his investments in his home country, South Korea, into digital currencies like Bitcoin and stored them on Binance. It, therefore, became impossible for the country’s authorities to confiscate the assets of the troubled Terraform Labs founder.

Although the matter was ongoing at press time, a Binance spokesperson reiterated the collaboration with the South Korean government while holding back further information.

“We provided Korean [law enforcement] authorities with the requested assistance,” the spokesperson said.

Notably, Binance had previously aided other countries and regions in recovering or freezing illicit funds deposited on the exchange. In February, for example, Binance recovered $6 million, which was tied to the Ronin bridge heist and returned it to the Norwegian Police authorities.

South Korean Prosecutors Requests for Kwon’s Extradition

In May 2022, Terraform’s native Terra blockchain and native cryptocurrencies (LUNA and UST) crashed, causing investors to lose as much as $40 billion worth of assets. Since then, the South Korean government has been on the hunt for Do Kwon. The country also collaborated with Interpol to capture Kwon. However, the infamous Terraform boss had fled the country into places like Singapore and kept himself hidden from authorities.

On March 23, Kwon was finally arrested at a Montenegro-based airport while he was on his way to fly into Dubai under a fake identity. The following day, South Korean prosecutors requested Do Kwon’s extradition to his home country. 

If he gets sent back to South Korea, Kwon will face criminal charges for violating the country’s capital markets act. He expects to serve at least a year in prison if found guilty after a court hearing.