South Korean prosecutors ask Binance to block Terra founder Do Kwon’s $69 million Bitcoin
- Prosecutors in South Korea reported Terra executives collectively accumulated $314 million in profit from the blockchain.
- Founder Do Kwon and co-founder Daniel Shin each amassed $69 million and $41 million, respectively.
- LUNA Classic price noted a nearly 11% spike following the news before falling back down to $0.000127.
Terraform Labs co-founder Do Kwon is in the crosshairs of many countries’ authorities at the moment. The disgraced CEO is fighting to stay out of prison in Montenegro and is now set to lose the money he collected from the Terra project.
Binance requested to block Terra founder’s withdrawals
South Korean prosecutors on April 7 reported that the former CEO of Terraform Labs, Do Kwon, along with other Terra executives earned around 414 billion Won ($314 million) from the project. The capital amassed has been labeled illegal due to the executives’ affiliation with the $40 billion collapse of the blockchain.
The $314 million earning has been reported to belong to nine employees of Terra, both former and current. Founder Do Kwon alone owns about $69 million out of the total sum. Co-founder Shin Hyun-Seong, also known as Daniel Shin, also accumulated close to $41 million from the blockchain.
In addition to the domestic wealth, prosecutors are attempting to seize properties owned by the founders and executives in Seoul as well as Hwaseong, Gapyeong, and Taean, South Chungcheong. Interestingly, the prosecution stated that they had identified almost no property in the name of Kwon.
The prosecutors determined that the former CEO converted most of his fortune into Bitcoin and transferred it to crypto exchanges. In line with the same, Binance has been asked to block the withdrawals of Kwon’s deposits.
As it is, Kwon is facing nearly five years in prison in Montenegro for falsifying documents at the Podgorica airport, where he was arrested. On the other hand, the United States is also pursuing criminal charges against Terra and Do Kwon for orchestrating a multi-billion Dollar fraud.
LUNA Classic price reacts against expectations
While the development signaled bad news for Terra, LUNA Classic price reacted rather positively by noting a nearly 11% spike during the intra-day trading hours on April 7. Trading at $0.000125 at the time of writing, LUNC is attempting to recover the losses witnessed in March.
LUNC/USD 1-day chart
The altcoin fell by almost 30% in the span of a week in early March, declining from $0.000170 to the current prices. While the Relative Strength Index (RSI) is still in the bearish zone, the indicator is climbing on the charts and flipping the neutral line into support could suggest a bounce is likely.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
