South Korean prosecutors have identified $314.2 million in illicit assets associated with Terraform Labs co-founder Do Kwon and his associates. However, most of the assets linked to Kwon are not recoverable or under the jurisdiction of South Korean authorities because they were reportedly converted into Bitcoin and stored in overseas crypto exchanges. Binance has been requested to halt any withdrawal requests associated with Kwon, and they have confirmed that they are cooperating with the prosecutors. The South Korean authorities are actively tracing properties associated with Terraform Labs executives in an effort to recover some of the illicit funds stolen from the Terra-Luna debacle. The collapse of the $40 billion ecosystem was initially thought to be a market-triggered event, but turned out to be a clear case of fraud with Kwon at the center of it. Kwon evaded arrest for nearly a year before being caught in Montenegro on March 23.

Korean prosecutors have contacted Binance, the world's largest cryptocurrency exchange, requesting it to prevent crypto fugitive Do Kwon from withdrawing funds. Prosecutors fear that Kwon will start liquidating crypto from the proceeds of selling property. They estimated that assets seized from Terra/Luna executives, including Kwon, were worth around $314 million, with Kwon's share estimated to be around $69 million. Prosecutors have applied for the foreclosure of sales of executives' apartments in Seoul, and there are properties located across the country also under investigation. However, prosecutors revealed that Kwon owned no property in Korea and had likely converted a large part of his property to Bitcoin, which was then transferred to overseas crypto exchanges, potentially including Binance. Kwon was arrested in Montenegro on March 23 and may also face charges there for passport fraud, which could delay any extradition efforts by South Korea.

The arrested crypto fugitive and Terraform Labs founder Kwon Do-hyung, who faces fraud charges in the U.S. and South Korea, has “zero ” identifiable assets in his native South Korea, prosecutors said on Friday.

Terra Labs halted the operation of Terra in May 2022 due to the demise of its ecosystem that was brought on by investors dumping their Terra stablecoin, TerraUSD, en masse.

Terraform Labs founder and former fugitive Do Kwon is currently in a Montenegro jail awaiting likely indictment for alleged document forgery. 

Before extradition, Terraform Labs founder Do Kwon will first have to stand trial in Montenegro for traveling on a fake passport, according to his lawyer in the country. The fugitive crypto entrepreneur may also have to serve time in prison before he is extradited from the Balkan nation, its justice minister indicated.

The U.S. may have gained an edge in a race with South Korea to extradite Terraform Labs chief Kwon Do-hyung from Montenegro on charges of fraud related to the collapse of the US$40 billion Terra-Luna cryptocurrency project in May last year, according to a report by Yonhap News on Wednesday. The report cites Montenegro Justice Minister Marko Kovac saying Washington requested the extradition of the South Korean national before Seoul, following his arrest in the country on March 23 for allegedly traveling on false travel documents.

A Montenegro court has rejected an appeal by Terra co-founder Do Kwon against extending his detention period to 30 days. Lawyers representing Kwon and CFO Han Chang-joon filed the appeal after the court's decision to extend their detention period. Kwon is facing charges of passport forgery and extradition requests from South Korea and the US. Montenegro's Minister of Justice said the extradition decision will be taken in a separate court proceeding after the passport forgery case, and extradition depends on several factors, including the severity of crimes, location of committed offenses, sequence of requests, and nationality. Meanwhile, South Korea's Seoul Southern District Court is reviewing an arrest warrant for Terra co-founder Daniel Shin.

A judge will decide whether Do Kwon will be extradited to the US or South Korea, Montenegro’s justice minister said, but the Terraform Labs co-founder may first have to serve time in the Balkan state if he’s convicted of traveling on fake documents.

Terraform Labs Pte co-founder Do Kwon is in a jail in Montenegro, but his ultimate destination will likely be the US or South Korea. Both countries have charged him in connection with an alleged cryptocurrency fraud that wiped out $40 billion in market value.