Benzinga - A recent report has revealed that Terra (CRYPTO: LUNA) cofounder Do Kwon, who was arrested in March for his alleged role in the collapse of the $40 billion Terra ecosystem in May 2022, appears to have converted most of his properties into Bitcoin (CRYPTO: BTC).
The disgraced founder allegedly sent his crypto stack to an exchange outside of South Korea, according to Korean media outlet KBS.
Since Kwon's arrest, South Korean prosecutors have been reportedly tracking, and seizing, the profits that Terraform Labs executives have accumulated.
Kwon and his associates allegedly acquired $314.2 million, with the Terraform Labs CEO holding $69 million, according to KBS.
The outlet added that South Korean authorities have already frozen the properties of Terraform cofounder Shin Hyun-seong and others.
"It has been found that there is very little property formed and owned by CEO Kwon in the country," one prosecutor told KBS.
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Prosecutors have already asked cryptocurrency exchange Binance to block Kwon from withdrawing any of his crypto assets, the outlet noted.
Earlier in February, the U.S. Securities and Exchange Commission filed a lawsuit against Kwon and his company, alleging that they had engaged in fraudulent activities that led to losses of at least $40 billion. Kwon and his team are accused of transferring over 10,000 Bitcoin from their failing project into a so-called "cold wallet" and then moving the assets to a Swiss bank.
In September 2022, a South Korean court issued an arrest warrant against Kwon after investors filed complaints that Terraform Labs had defrauded them.
The collapse of LUNA sent the crypto industry reeling through a prolonged bear market that wiped out a massive fraction of the industry's capitalization.
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