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Binance Must Cooperate with Prosecutors to Track Do Kwon: Investigator

Published 2023-05-01, 09:25 a/m
© Reuters.  Binance Must Cooperate with Prosecutors to Track Do Kwon: Investigator

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  • Binance has been urged to cooperate with South Korean prosecutors in tracking funds.
  • The Korean prosecutor located 463 billion won in assets tied to LUNA founder.
  • Terraform Labs’ founder Do Kwon reportedly sent converted profit to Binance.

Evan Spicer, a director of crypto investigations at MyChargeBack, told Korean media that Binance, the largest crypto exchange, has no choice but to cooperate with local prosecutors in tracking funds related to Do Kwon, the founder of Terraform Labs.

Spicer argued, claiming the exchange has a massive presence in South Korea — which has gone into a regulation frenzy in recent months, undertaking a major crackdown.

“It would be in their interest to cooperate with South Korean prosecutors in light of major developments,” the director said in the interview with Korean Media, adding that the exchange is currently being investigated in the US. Spicer added:

Binance has made an effort to move out of the US as much as possible to try and protect itself. So it will not want to cross any of its other host countries the wrong way, especially not one close to the US like South Korea.

Notably, these comments were due to the actions of Do Kwon (Kwon Do-Hyung), the founder of Terraform Labs, who reportedly converted millions of his profits from LUNA to Bitcoin and ultimately sent the assets to crypto exchanges such as Binance.

Last month, the Korean prosecution team located 463 billion won in cash and assets closely tied to Kwon. However, most of his gains were considered “unrecoverable,” given that Kwon has converted them into Bitcoins utilizing crypto exchanges.

Based on this assessment, the report highlighted that the Seoul Southern District Prosecutors’ Office had asked Binance to prohibit and prevent Kwon and his partners from extracting any cash or cash-equivalent assets.

The post Binance Must Cooperate with Prosecutors to Track Do Kwon: Investigator appeared first on Coin Edition.

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