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

South Korean authorities requested Kucoin and crypto exchange OKX to block 3,313 Bitcoin (BTC), allegedly linked to Do Kwon who is the co-founder Terra blockchain developer Terraform Labs.

Kwon is currently running from Korean authorities in the securities violations case. He reportedly created a new account on September 15, one day after a Korean court issued a warrant for Kwon’s arrest.

Cryptoquant reports that a new BTC wallet was created with the name Luna Foundation Guard (LFG) and 3,313 BTC were then transferred to KuCoin and OKX.

KuCoin received 1,354 BTC. These were immediately frozen after the transfer. OKX reportedly ignored authorities’ requests. The total 1,959 BTC could have been transferred to other platforms, but they were not frozen.

Cointelegraph tried to reach both crypto exchanges but did not receive a reply at press time.

Many eyebrows were raised by the movement of BTC out of the LFG wallet. This contradicts Kwon’s earlier claims that he used all of the BTC in tLFG reserve to defend TerraUSD Classic (USTC).

Related: Terra cofounder Do Kwon claims he is’making no effort to hide’ after Interpol notice

Kwon claimed, prior to his arrest warrant being issued on Sept. 14, that he was not under investigation or had been contacted by authorities. This despite multiple reports about investigations in South Korea. Kwon fled Singapore shortly after his arrest warrant was issued, prompting authorities to contact Interpol for assistance.

Kwon was confirmed as fugitive by Interpol on Sept 26th when they issued a red note against him. Kwon, despite all evidence against him and an international notice against his, continues to tweet occasionally claiming otherwise.

For something that has notice in the name it sure gives no notice Tried to search it here, found nothing: https://t.co/SuX3aIu6r6
Do Kwon (@stablekwon), September 26, 2022

The collapse of Terra’s $40 billion ecosystem led to a crypto market crash that cost nearly a trillion dollars. Kwon maintained support even after all the chaos, claiming his innocence and claiming he had lost everything during the collapse.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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