Do Kwon May Have Conducted Cryptocurrency Transactions While in Custody, New Reports Suggest

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.

Embattled Terra co-founder Do Kwon may have conducted cryptocurrency transactions while in custody in Montenegro, according to new investigative reports.

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

As part of a broader search of detainees’ belongings at the prison in Spuž, investigators discovered laptops, mobile phones, and access codes related to virtual wallets and blockchain accounts, local media reported, citing sources from the Special Police Department.

Kwon, who was arrested at Podgorica airport on March 23, 2023, together 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.

This incident has fueled speculation about the possibility of “external communications” while Kwon was detained in the Montenegrin prison, according to the report.

While 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, evidence of campaign financing and joint business dealings between Kwon and Montenegro’s Prime Minister Milojko Spajić was found on one of his laptops, according to police sources.

However, the official investigation has yet to confirm or deny these allegations.

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

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.

Kwon is also said to 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, according to the reports, 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 then-Minister of Police Filip Adžić intervened and ordered that all “relevant materials” be taken from the prison.

This intervention has led to accusations of favoritism toward 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 either to the United States or South Korea, 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.