Revealing an insider: The truth behind Do Kwon's illegal millions
There were claims that Do Kwon had transferred 10,000 Bitcoin to the Swiss Sygnum Bank and later paid out.
There were claims that Do Kwon sent 10,000 Bitcoin to the Swiss Sygnum Bank and later paid it out. However, a person familiar with the case has explained that this is not true and revealed where Do Kwon's money actually resides.
A year ago, the Terra ecosystem collapsed in spectacular fashion amid alleged fraud by Do Kwon, the brain behind the multi-billion-dollar project. After going into hiding, he was arrested in March at the airport in Montenegro. The South Korean prosecutor's office is linking the ongoing investigation to the Swiss Sygnum Bank, where Kwon allegedly sent 10,000 Bitcoin and had another $100 million in an account.
Due to business relationships with Sygnum, the bank received less than half of the Bitcoin, roughly equal to $100 million. Of this amount, 70% was transferred to a trust account of a reputable international law firm based on a court order. The remaining 30% was intended for payments with a clear operational business purpose, and the business relationship existed before the ecosystem's collapse
After the collapse, Terra employees were simply paid in full
In May 2022, the Terra Luna ecosystem collapsed, with no signs of a criminal background. Terraform Labs, the company behind the ecosystem, had at that time a relatively large number of employees, allowing legitimate operating payments to continue. The payments were made by Sygnum Bank, so it is reported.
After the revelation of the Terra founder's account at Sygnum Bank, wild speculation arose. For example, the post on X spread that Do Kwon had cashed crypto funds for cash and withdrew them in Switzerland. However, as the person familiar with the case confirmed, there is no factual basis for this. Sygnum Bank does not dispense cash and does not accept this. The scenario of someone carrying Bitcoin on a USB stick and walking away with money in briefcases does not exist.
It remains unclear whether any money is left in the Swiss account. South Korean and U.S. investigators are currently seeking to freeze the bank account. Importantly, no charges have been filed against Sygnum Bank, by either a foreign or domestic authority.
Montenegro Endgame
After Terra collapsed, Do Kwon went into hiding and visited several countries while checking in on Twitter. He visited Costa Rica, Kosovo, and Serbia before traveling to Montenegro. At Montenegro's airport, he was arrested by the authorities.
South Korea and the United States are currently in a bid to extradite Do Kwon. A fraud indictment has already been filed against him. Because he traveled from Costa Rica with counterfeit travel documents, he is also charged by local authorities.
