Kwon's Wallets Drained Of Over $2M As South Korea Moves To Freeze His Assets

Electronic wallets allegedly held by the embattled Terraform Labs (TFL) co-founder and CEO Do Kwon were mysteriously drained of more than $2 million in just a couple of days after South Korean prosecutors moved to freeze the crypto kingpin's assets.

In a no longer surprising and already anticipated turn of events, the said electronic wallet made substantial withdrawals amounting to 2.86 billion won or approximately $2.15 million over two days.

The first withdrawal amounting to about $400,000 worth of stablecoins was made at 2:00 a.m. ET on Tuesday from an Ethereum wallet linked to Kwon, following which an additional $150,000 worth of Terra Classic (LUNC) was withdrawn from a Terra wallet associated with the TFL CEO made on the same day.

Later that night, a staggering $1.6 million in stablecoins was withdrawn from another Ethereum wallet, allegedly held by Kwon.

The digital assets withdrawn from wallets linked to Kwon in just a span of two days were reportedly worth approximately $2.15 million, the report claimed.

It is worth noting that Kwon, who is in detention in a facility in Montenegro, had requested on May 11 to be released on trial without detention by posting a $436,000 bail, which the court approved on May 12, just a day after Kwon's legal team's filing.

This week, a district prosecutor's office in the Balkan country contested the court's decision, and appealed the bail terms to the Supreme Court.

Speculations are rife that the withdrawals could be in preparation for Kwon's bail, but some think otherwise.

Interestingly, these substantial withdrawals made by electronic wallets supposedly held by Kwon, happened days after reports broke that South Korean prosecutors moved to freeze the crypto executives' assets.

Recently, the Seoul Southern District Court supposedly honored the prosecutor's request to freeze approximately $176 million worth of Kwon's assets in his home country.

Authorities also restricted Kwon from accessing his house in southern Seoul, his studio flat in Nonhyun-don, an undisclosed amount of money deposits at Woori Bank, securities at brokerage firm Mirae Asset and luxurious vehicles, among many others.

On May 11, during his trial at a Montenegrin court, Kwon said he was willing to provide more details of his assets and would have given his account numbers if only the media were not in the courtroom, before claiming the majority of his assets were in "volatile and liquid" form.

"I will not hide, I agree to security measures, I will show up when requested," Kwon told the Montenegrin court in English.