he controversial co-founder of Terraform Labs, Do Kwon, has been fighting his legal battles since the beginning of this year after his arrest earlier in Montenegro. New reports suggest that he could have carried on some crypto transactions from prison, and the news surprised many in the crypto space.
Delayed Device Seizure Raises Questions
Local media reported that Montenegrin authorities seized Do Kwon’s electronic devices only 72 days after his arrest on March 23, 2023. His laptops, mobile phones, and codes providing access to cryptocurrency wallets were confiscated only on June 5.
Since this date, investigators have established that Kwon might have used such a delay in seizing the forenamed items to his advantage to perform crypto transactions from his prison cell in Spuž.
This lateness in securing Kwon's digital devices has led to questions about the extent of control he might have had over his financial operations. The Special Police Department in Montenegro has confirmed the finding of several electronic items and wallet access codes during a search, but investigations are still ongoing.
Crypto Transactions from Prison Alleged
According to reports, Kwon may have done at least three crypto transactions from prison. The transfer was facilitated using an account of a Podgorica-based mobile phone firm. Details remain unconfirmed by Montenegro authorities, but the situation has further complicated the legal standoff involving Kwon.
The seizure of his devices reportedly came in response to then Minister of Police, Filip Adžić. According to sources, the Department of Police acted late, giving Kwon an opportunity to keep operating for several months despite his arrest.
Impact on Do Kwon's Legal Battles
Kwon is in a complicated situation awaiting possible extradition to either South Korea or the United States. Both nations have requested his extradition on alleged financial crimes relating to the collapse of Terraform Labs' stablecoin, UST, and its token, LUNA, in 2022.
These new revelations about his activities while in custody could affect any future proceedings against him.
Authorities in Montenegro have not explained whether the use of his devices was a one-time thing or part of a broader scheme to control crypto assets from jail. Officially, most of the details remain unclear to close an investigation, but that he allegedly retained access to his digital wallets is setting off alarms among both regulators and crypto enthusiasts.
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