Terra Founder Do Kwon Allegedly Made Cryptocurrency Transactions in Prison: His Phone Turned On After Mysterious Incident

Terra (LUNA)’s detained founder Do Kwon reportedly made numerous cryptocurrency transactions from a Montenegrin prison, with authorities taking more than two months to seize his crypto wallet information and electronic devices, portal ETV reported.

Kwon was arrested on March 23, 2023, but it took Montenegrin authorities 72 days to hand over his electronic devices to the investigating judge. The report suggests that laptops, mobile phones, crypto wallet logins and other codes to access blockchain accounts were eventually found during searches of prison detainees, including Kwon.

An official from the Montenegrin Special Police Department confirmed the discovery of these items. However, two sources claim that Kwon managed to make at least three cryptocurrency transactions while in custody. These transactions were allegedly made through an account connected to a mobile phone company in Podgorica. However, Portal ETV was unable to verify the authenticity of these transactions.

Montenegro's National Security Agency (ANB) said Kwon's devices were confiscated only after an instruction from the Minister of Police and the Police Directorate demanding the removal of “everything that should be confiscated on the first day of the arrest.”

Kwon fled to Serbia after an international arrest warrant was issued for him in September 2022, before being caught in Montenegro. Media pressure forced him out of Serbia in late 2022 and early 2023, the ETV portal reported, with the country facing criticism for allegedly sheltering a crypto scammer. Kwon was reportedly transferred from Belgrade to Montenegro along with state security personnel as part of an attempt to resettle him in a Middle Eastern country known for its lenient extradition policies. However, sources claim that Kwon’s arrest was planned in advance and that Montenegrin border guards were informed about Kwon’s fake passports.

The report also notes a mysterious incident involving one of Kwon’s confiscated cell phones. The device was unexpectedly opened after a secret tunnel leading to the Supreme Court evidence room was discovered. Authorities have yet to determine whether this is a coincidence or suspicious.

*This is not investment advice.