Do Kwon Allegedly Conducted Cryptocurrency Transactions From Prison in Montenegro

Do Kwon, the co-founder of the collapsed Terraform Labs blockchain, is at the center of a developing story that suggests he may have conducted cryptocurrency transactions while in custody in Montenegro. This revelation comes after investigative reports revealed that authorities took 72 days to seize his electronic devices and wallet access codes following his arrest.

Local media reports, citing sources from the Special Police Department, indicate that during a search of detainees’ belongings at the prison in Spuž, investigators found laptops, mobile phones, and access codes related to virtual wallets and blockchain accounts. Kwon, who was arrested at Podgorica airport on March 23, 2023, had a mobile phone confiscated during his arrest that reportedly “came to life” after a tunnel leading to the High Court depot was discovered.

Speculation has arisen about the possibility of “external communications” while Kwon was detained in the Montenegrin prison. Evidence of campaign financing and joint business dealings between Kwon and Montenegro’s Prime Minister Milojko Spajić was reportedly found on one of his laptops, although these allegations have not been confirmed or denied by the official investigation.

Despite repeated inquiries from the media, 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 suggest that Kwon may have executed at least three transactions from his crypto wallet while in custody, using the account of a Podgorica-based company involved in mobile device sales.

Accusations of favoritism toward Kwon have surfaced, 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 pending extradition to either the United States or South Korea, Kwon has largely remained silent throughout the proceedings. Terraform’s native token Luna Classic (LUNC) is currently trading at $0.00009151, up nearly 2% in the last 24 hours.

The unfolding case of Do Kwon and the allegations of conducting crypto transactions from prison have raised concerns about the integrity of the legal system and the potential for illicit activities within the cryptocurrency industry. As authorities continue to investigate, the full extent of Kwon’s actions while in custody and the implications for his future remain uncertain.