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Korean authorities orders freeze of $67M of Bitcoin tied to Do Kwon

ETHHERO September 27, 2022 2 min read



South Korean authorities have requested crypto alternate OKX and Kucoin to freeze 3,313 Bitcoin (BTC) reportedly tied to Do Kwon, the co-founder of Terra blockchain developer Terraform Labs.

Kwon, who’s presently on the run from the Korean authorities within the securities violation case, reportedly created a brand new pockets on Sept. 15, only a day after a Korean court issued an arrest warrant in opposition to the fugitive crypto founder.

In accordance with the crypto analytic group Cryptoquant, a brand new BTC pockets was created underneath the title of Luna Basis Guard (LFG), and a complete of three,313 BTC was then transferred to the KuCoin and OKX alternate.

KuCoin acquired a complete of 1,354 BTC, which have been frozen instantly after the switch, whereas OKX has reportedly ignored authorities’ requests. Thus, a complete of 1,959 BTC couldn’t be frozen and will have been moved to different platforms.

Cointelegraph reached out to each crypto exchanges for affirmation however didn’t get a response at press time.

The motion of BTC from the LFG pockets raised many eyebrows because it contradicts Kwon‘s early claims of utilizing all of the BTC in LFG reserves to defend the TerraUSD Basic (USTC) peg. 

Associated: Terra co-founder Do Kwon says he’s ‘making zero effort to hide’ following Interpol notice

Previous to the issuing of an arrest warrant on Sept. 14, Kwon claimed that he’s neither underneath investigation nor has he been contacted by any authorities, regardless of quite a few reviews of a number of investigations in South Korea. Nonetheless, proper after an arrest warrant was launched, Kwon reportedly fled Singapore, forcing authorities to hunt assist from Interpol.

On Sept. 26, Interpol issued a red notice in opposition to Kwon, confirming his fugitive standing. Nonetheless, regardless of all of the proof and a global discover in opposition to him, Kwon continues to tweet every so often, claiming in any other case.

The $40 billion Terra ecosystem collapse led to a crypto market rout that worn out almost a trillion {dollars} from the crypto market. Even after such mayhem, Kwon continued to garner assist from some sections of the group as he claimed innocence and maintained he has misplaced the whole lot within the collapse.