In the unfolding saga surrounding Do Kwon, the co-founder of the now-defunct Terraform Labs blockchain, recent investigative reports have surfaced suggesting that he may have engaged in cryptocurrency transactions while detained in Montenegro. This surprising development comes after a prolonged period, during which authorities reportedly took 72 days to seize his electronic devices and wallet access codes following his arrest.
Discovery of Laptops and Crypto Access Codes During Prison Search
According to local media, referencing sources from the Special Police Department, a search of detainees’ belongings at the prison in Spuž uncovered laptops, mobile phones, and access codes linked to virtual wallets and blockchain accounts. Do Kwon, who was apprehended at Podgorica airport on March 23, 2023, along with his associate Chang Yun Han, had his mobile phone confiscated during his arrest. Intriguingly, the device allegedly “came to life” after a tunnel leading to the High Court depot was discovered.
This unexpected incident has sparked speculation about the potential for “external communications” while Do Kwon was held in the Montenegrin prison. Investigators have yet to publicly confirm whether the activation of Kwon’s phone was merely coincidental or indicative of a broader network facilitating his continued involvement with his cryptocurrency operations.
Police sources have disclosed that evidence of campaign financing and joint business ventures between Do Kwon and Montenegro’s Prime Minister Milojko Spajić was found on one of his laptops. However, the official investigation has not yet confirmed or refuted these claims. Notably, the courts in Montenegro have stated that they did not have possession of Do Kwon’s electronic devices until June 5, 2023, despite his arrest occurring nearly four months prior.
Progression of Do Kwon’s Case Amid Ongoing Investigations
Despite persistent media inquiries regarding Kwon’s possible use of access codes for blockchain transactions, responses from the Basic Prosecutor’s Office and the High Court have remained “vague,” citing the need to safeguard the interests of the proceedings. Reports suggest that Kwon might have executed at least three transactions from his crypto wallet while in custody, utilizing an account from a Podgorica-based company involved in mobile device sales, further complicating the narrative surrounding his detention and potential illicit activities.
Sources within Montenegrin authorities assert that the confiscation of Kwon’s electronic devices only transpired following intervention by then-Minister of Police Filip Adžić, who mandated the seizure of all “relevant materials” from the prison. This intervention has led to accusations of favoritism toward Do Kwon, implying that he may have retained access to crucial devices that should have been secured from the outset.
As the investigation continues, numerous 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.
Meanwhile, the daily chart reflects Luna Classic’s (LUNC) sideways price action. At the time of writing, Terraform’s native token Luna Classic (LUNC) is trading at $0.00009151, showing an increase of nearly 2% in the last 24 hours.
As this story develops, the world watches closely to see how these investigations will unfold and what implications they may have for the broader cryptocurrency landscape.
