Do Kwon Reportedly Conducted Crypto Transactions From Prison For More Than 2 Months

In a developing story surrounding Do Kwon, the co-founder of the collapsed Terraform Labs blockchain, new investigative reports suggest he may have conducted cryptocurrency transactions while in custody in Montenegro.

This revelation follows a lengthy period during which authorities reportedly took 72 days to seize his electronic devices and wallet access codes after his arrest.

Laptops And Crypto Access Codes Found During Prison Search

Local media reports, citing sources from the Special Police Department, indicate that during a search of detainees’ belongings at the prison in Spuž, investigators discovered laptops, mobile phones, and access codes related to virtual wallets and blockchain accounts. 

Kwon, arrested at Podgorica airport on March 23, 2023, along with his associate Chang Yun Han, had a mobile phone confiscated during his arrest that reportedly “came to life” after a tunnel leading to the High Court depot was discovered. 

Per the report, this incident has fueled speculation about the possibility of “external communications” while Do Kwon was detained in the Montenegrin prison.

Investigators have not publicly clarified whether the activation of Kwon’s phone was merely coincidental or indicative of a more extensive network enabling him to maintain contact with his cryptocurrency operations. 

According to police sources, evidence of campaign financing and joint business dealings between Do Kwon and Montenegro’s Prime Minister Milojko Spajić was found on one of his laptops. However, the official investigation has yet to confirm or deny these allegations.

The courts in Montenegro have officially stated that they did not have Do Kwon’s electronic devices until June 5, 2023, despite his arrest occurring nearly four months earlier. 

Do Kwon’s Case Unfolds With Ongoing Investigations

Despite repeated inquiries from the media regarding Kwon’s potential use of access codes for blockchain transactions, responses from the Basic Prosecutor’s Office and the High Court have been “vague,” citing the need to protect the interests of the proceedings.

Reports also suggest that Kwon may have executed at least three transactions from his crypto wallet while in custody, utilizing the account of a Podgorica-based company involved in mobile device sales, further complicating the narrative surrounding his detention and potential illicit activities.

Sources within the Montenegrin authorities claim that the confiscation of Kwon’s electronic devices only occurred after intervention from then-Minister of Police Filip Adžić, who ordered that all “relevant materials” be taken from the prison. 

This intervention has led to accusations of favoritism toward Do Kwon, suggesting that he may have had access to crucial devices that should have been secured from the outset.

As the investigation continues, questions remain unanswered regarding the extent of Kwon’s control over his crypto assets while in custody. With his pending extradition to either the United States or South Korea, Do Kwon has largely remained silent throughout the proceedings. 

At the time of writing, Terraform’s native token Luna Classic (LUNC) is trading at $0.00009151, up nearly 2% in the last 24 hours. 

Featured image from DALL-E, chart from TradingView.com