Illegal Transfer of Funds from LUNA to Bitcoin By Do Kwon: South Korean Prosecutors on The Move

According to reports, South Korean prosecutors claim that Do Kwon has transferred illegal funds from LUNA to Bitcoin, using overseas cryptocurrency exchanges instead of direct physical asset investments. It is reported that South Korean regulatory authorities have requested that Won stop any withdrawal requests related to Do Kwon, and Won has confirmed that they are cooperating with South Korean prosecutors and providing any assistance they need. （Cointelgraph）

Won On: will cooperate with the South Korean prosecutor and provide any assistance needed to investigate Do Kwon

Do Kwon, the founder of Terraform Labs and cryptocurrency LUNA, is in hot water again. South Korean regulatory authorities have claimed that Kwon transferred illegal funds from LUNA to Bitcoin using overseas cryptocurrency exchanges instead of direct physical asset investments. Reports suggest that the South Korean prosecutors have taken up the matter seriously and requested that Do Kwons stop any withdrawal requests related to the transaction. Won, the crypto exchange, has confirmed that they are cooperating with South Korean prosecutors and providing any assistance they need.

The Background of The Matter

Do Kwon, founder of Terraform Labs, has been accused of transferring illegal funds from LUNA to Bitcoin. It has been alleged that he chose to do so using overseas cryptocurrency exchanges instead of employing direct physical asset investments, as required by South Korean regulatory authorities.
This is not the first time that Kwon has crossed regulatory boundaries. In the past, he was accused of conducting unauthorized ICOs for his firm Terra, which is also part of Terraform Labs. The South Korean authorities imposed a fine of $225,000 on him for his involvement in the unauthorized ICOs.

The Alleged Transfer Of Illegal Funds

According to the reports, South Korean prosecutors are alleging that Do Kwon transferred illegal funds from LUNA to Bitcoin. The suspicion came to light when the South Korean authorities were looking into the business activities of Terraform Labs. The suspicion got stronger after Kwon allegedly withdrew a significant sum of funds from the LUNA cryptocurrency.
South Korean authorities soon discovered that Kwon had transferred these funds using overseas cryptocurrency exchanges instead of making direct physical asset investments. This move is a violation of South Korean regulations.

The Response of South Korean Authorities

The South Korean authorities have taken this matter seriously. They have requested that Do Kwon stops any withdrawal requests related to this transaction. Won, the crypto exchange involved in this transfer, has confirmed that they are cooperating with South Korean prosecutors to provide any assistance needed.
South Korean regulators will likely impose strict penalties on Kwon for violating the regulations meant to curb illegal activities in the cryptocurrency industry. This case will serve as an example for other cryptocurrency firms. It will also highlight the importance of adhering to regulations and avoiding any violations that could damage a company’s reputation.

Conclusion

The illegal transfer of funds is a serious crime and a big blow to the reputation of the cryptocurrency industry. South Korean authorities are taking the matter seriously and will likely impose strict penalties on Do Kwon. This case serves as a reminder that cryptocurrency firms must adhere to regulations to avoid any violations.

FAQs

1. What is LUNA cryptocurrency?
LUNA is a cryptocurrency developed by Terraform Labs.
2. What was Do Kwon accused of in the past?
Do Kwon was accused of conducting unauthorized ICOs for his company Terra, which is also part of Terraform Labs.
3. What will be the outcome of this legal case?
The South Korean authorities will likely impose strict penalties on Kwon for transferring illegal funds. This case will serve as an example for other cryptocurrency firms on the importance of adhering to regulations and avoiding violations that could damage their reputation.