$1 million transferred to Binance from the TFL founder’s personal wallet

What’s new? On June 26, a transfer of $1 million in USDC stablecoins was made to another address from a wallet belonging to the founder of Terraform Labs (TFL) Do Kwon. According to Digital Asset, the coins from the new wallet were instantly transferred to the crypto exchange Binance, which may be related to an attempt to cash out funds. In this, the entrepreneur himself is currently serving a prison sentence in Montenegro for passport forgery.

News on the Digital Asset website

What else is known? The wallet named “Ether Wallet 4,” from which the transfer was made, is one of Do Kwon’s six personal wallets (two Terra wallets and four Ethereum wallets). According to Digital Asset, the TFL founder transferred coins to this wallet several times before making a transaction from it to the new “Wallet A” on June 26. “Wallet A” has a total transaction history of 15 transactions.

According to Hansung University professor Cho Jaewoo, Do Kwon continued to withdraw his assets even after his arrest in March of this year, and local police need to find out who is helping him. He also added that Binance would have to actively cooperate with the investigation if law enforcement officers initiated an investigation into “Wallet A’s” activities.

Leader of the leading party in Montenegro accused of having ties with Do Kwon

The alleged connection is reported in a handwritten document by the founder of TFL

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What events preceded it? In June, South Korean prosecutors demanded that Kwon’s assets worth millions of dollars be frozen. They believe the funds were transferred to the bank from the wallet of Luna Foundation Guard, a non-profit organization originally created to support the Terra blockchain ecosystem and owned by the TFL founder. That same month, a court in Montenegro sentenced Kwon to four months in prison for using a fake passport while trying to leave the country in March 2023.

Several other countries are investigating the May 2022 collapse of Terra, which caused tens of billions of dollars in losses for investors. Interpol and South Korea, of which he is a citizen, have issued arrest warrants for Kwon in the case. The US Attorney’s Office and securities regulator, as well as the police in Singapore, are conducting their own investigations. Collective lawsuits against TFL and Kwon have also been filed by investors from Korea, the United States, and Singapore.

After Kwon’s release, Montenegro will consider his extradition to either South Korea or the US, and the authorities in both countries intend to have the entrepreneur attend the domestic proceedings.