Despite his imprisonment, it is reported that Do Kwon, the disgraced founder of Terra, managed to make multiple cryptocurrency payments while in custody in Montenegro.
Authorities reportedly took 72 days to seize his crypto wallet credentials and other electronic devices, raising concerns over delayed action.
Laptops and crypto access codes found during prison search
Kwon, who was arrested on March 23, 2023, had his devices—including laptops, mobile phones, and crypto wallet login details—handed over to the investigating judge only in June, according to a report by Portal ETV. A Special Police Department official confirmed that these devices, along with access codes for blockchain platforms, were found during a search of detainees, including Do Kwon.
Sources claim that at least three transactions were made from Kwon’s crypto wallet during his imprisonment. These transactions allegedly occurred through an account connected to a Podgorica-based mobile telecommunications firm. However, Portal ETV has been unable to independently verify these claims.
As the creator of the collapsed Terra ecosystem, Kwon is already facing multiple legal battles across several countries. Now his potential involvement in cryptocurrency transactions while incarcertaed adds even more controversy to his case.
Additionally, Montenegro's National Security Agency (ANB) sources suggest that the delay in confiscating Kwon's devices was due to the Ministry of Police and Police Directorate not issuing a request to seize "everything that should have been taken on the day of arrest" until much later.
These reports have also created speculations about the possibility of external communications while Do Kwon was detained in the Montenegrin prison. Investigators also hasn't clarified whether the activation of Kwon's phone was just a coincidence or indicative of a more extensive network enabling him to maintain contact with his cryptocurrency operations.
Do Kwon's Arrest: A Pre-Planned Operation?
Following an international arrest warrant issued in September 2022, Do Kwon fled to Serbia. According to Portal ETV, media pressure eventually forced him out of the country between late 2022 and early 2023, after allegations surfaced of Serbia harboring a crypto fraudster.
Reports suggest Kwon was escorted by Serbian state security from Belgrade to Montenegro as part of a plan to relocate him to a Middle Eastern country with lenient extradition laws. However, sources allege that his arrest could have been premeditated, with Montenegro’s border control tipped off about Kwon’s forged passports.
Police sources have also revealed that evidence of campaigning financing and joint business dealing with the Montenegro Prime Minister was found on one of Do Kwon's laptops. This new revelation has led many to accuse the Montenegro authorities of showing favoritism towards Do Kwon.
Further intrigue surrounds Kwon’s arrest, with reports indicating that one of the mobile phones confiscated at the time was mysteriously reactivated when a secret tunnel to the High Court evidence room was discovered. Authorities have reportedly failed to investigate whether this occurrence was coincidental or suspicious.
As the investigation continues, questions remain unanswered regarding the extent of Kwon't 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.
Supreme court to rule on Kwon't extradion
Amid the controversy, the Supreme Court of Montenegro is expected to issue a ruling by the end of this month regarding the potential legal violation in Kwon's extradition case.
However, the local prosecutor has expressed concerns that earlier rulings by both the High Court and the Appellate Court regarding Kwon't extradition may have violated Montenegrin law.
The ruling will determine if Kwon't extradition process followed proper legal channels or if there were oversights in earlier decisions. If the court finds legal violations, this could further complicate the extradition of Do Kwon, who is wanted in several countries in connection to the Terra ecosystem collapse.
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