The downfall of Terra in May last year stunned the cryptocurrency community. Terra, once a promising ecology, saw its value drop from $40 billion to nearly nothing.
According to investigations, former chief executive Do Kwon was at the core of a vast fraud conspiracy. Since then, South Korean authorities have been attempting to collect criminal funds linked to Kwon and his friends.
Unfortunately, the officials have encountered a number of roadblocks in their efforts. The majority of Kwon’s assets are unrecoverable, as the former CEO allegedly changed them into Bitcoin utilizing offshore crypto exchanges.
Despite this, prosecutors have discovered 414.5 billion won ($314.2 million) in unlawful assets tied to Kwon, of which nearly $70 million is directly linked to the former top honcho.
Meanwhile, South Korean officials have notified Binance, the world’s biggest cryptocurrency exchange, to prohibit Do Kwon from extracting any cash. They have asked Binance to freeze all wallets related with Kwon.
Furthermore, prosecutors have seized former Terra executives’ residences and other assets in order to prevent them from selling an asset that may be linked to legal matters.
Despite an arrest warrant and an Interpol red notice against his name, Do Kwon eluded capture for nearly a year before being apprehended in Montenegro on March 23 while attempting to travel using forged passports.
But, he may face charges in Montenegro for passport fraud, which could stymie South Korea’s extradition efforts.
Both South Korea and the United States have requested his extradition, and Do Kwon is facing criminal accusations in both countries.
What is a Red Notice?
An Interpol Red Notice is a call to law enforcement around the world to find and temporarily arrest someone who is wanted for extradition or prosecution by a national jurisdiction.
It is regarded as one of the highest and most urgent alerts issued by the Interpol and is issued at the request of a member nation.
The notice contains information on the person sought, such as their name, photo, and a description of the suspected crime for which they are sought. If a Red Notice is issued, member nations of Interpol can take action to capture and extradite the individual.
It should be noted, however, that a Red Notice is not an arrest warrant and does not obligate member nations to apprehend the individual, but it is a potent tool for international law enforcement cooperation.
Terra LUNA/USD 1 year chart. Image: BeInCrypto
Terra’s Demise and the Struggle of its Redesigned Network
Terra’s demise has had far-reaching ramifications for the cryptocurrency market. The redesigned Terra 2.0 network has received little attention, and its LUNA coin is currently selling at $1.27, a far cry from its high of nearly $20.
The original Terra coin has been rebranded as Terra Luna Classic, LUNC, and is currently worth $0.00012. The Terra stablecoin has been relaunched as Terra Classic USD (USTC), however it is also nearly extinct, with a value of only $0.02.
BTC total market cap now at $539 billion on the weekend chart at TradingView.com
The Terra crash and ensuing investigation have exposed the hazards connected with the cryptocurrency market.
The South Korean authorities’ attempts to retrieve ill-gotten gains from Do Kwon and his accomplices indicate their will to combat fraud and other related crime.
Yet, the difficulties they confront in doing so highlight the need for increased regulation and monitoring in the cryptocurrency industry.
-Featured image from Coinpedia