Korea Froze Do Kwon’s $40M Worth Crypto, Who Says It’s Not His
South Korean authorities are said to have frozen $40 million worth of digital assets, including bitcoin, that allegedly belong to Do Kwon, the founder of Luna. But Kwon said that none of his money has been frozen. He insisted, “I don’t even use Kucoin and Okex. I don’t have time to trade, and none of my funds have been frozen.”
Prosecutors say they have frozen Do Kwon’s crypto, including Bitcoin
Supposedly belonging to Terraform Labs co-founder Kwon Do-hyeong, South Korean prosecutors have frozen nearly $40 million in crypto assets, according to reports (also known as Do Kwon). Using the Korean newspaper News1 as a source, reporter Colin Wu tweeted on Wednesday:
“South Korean prosecutors have frozen $39.66 million of crypto assets, including BTC, owned by Do Kwon through two exchanges. Do Kwon and LFG previously denied trying to transfer their 3,313 BTC after being issued an arrest warrant.”
The coins were frozen at the cryptocurrency exchanges Kucoin and Okx, the publication said, and the two trading platforms agreed to do so at the request of the prosecution.
Last month, South Korean prosecutors said they wanted to freeze 3,313 bitcoins linked to Kwon that were moved from a wallet allegedly linked to Luna Foundation Guard (LFG) to Kucoin and Okx. But the organisation denied the claim, saying that “since May 2022, LFG hasn’t made any new wallets or moved BTC or other tokens it owns.”
After hearing that prosecutors had frozen $39.66 million in cryptocurrency that belonged to him, Kwon went on Twitter to say that the frozen funds are not his. “I don’t understand why people spread this lie. Are they trying to show off? “But for what?” The Tuesday tweet from the founder of Luna said:
“Once again, I don’t even use Kucoin and OkEx, have no time to trade, no funds have been frozen. I don’t know whose funds they’ve frozen, but good for them, hope they use it for good.”
I don't get the motivation behind spreading this falsehood – muscle flexing? But to what end?
Once again, I don't even use Kucoin and OkEx, have no time to trade, no funds have been frozen.
I don't know whose funds they've frozen, but good for them, hope they use it for good ? https://t.co/gSucKfqsxj
On Sept. 14, a South Korean court put out an arrest warrant for Kwon. After the crash of the cryptocurrency luna (now called Luna Classic (LUNC)) and the stablecoin TerraUSD, he is being accused of fraud (UST). Interpol has also put out a “Red Notice” for him. Interpol’s website says, “A Red Notice is a request to law enforcement around the world to find and temporarily arrest a person pending extradition, surrender, or other legal action.” It also says, “Red Notices are sent to fugitives who are wanted for prosecution or to serve a sentence.”
We don’t know where the founder of Luna is right now. People thought he was in Singapore, but the Singapore police recently said he is not there right now. Kwon has said that he is not “on the run.” He recently wrote on Twitter that he is “not trying to hide.”
