Terraform CEO Do Kwon Debunks $39.6 Million Crypto Freeze

Summary:

• Terra chief Do Kwon says he doesn’t trade crypto and none of his funds were frozen by South Korean prosecutors.
• Authorities confiscated some of Kwon’s crypto holdings worth $39.6 million, CoinDesk reported on Wednesday citing local Korean media.
• Previous reports also claimed that investigators froze 3,313 Bitcoin on KuCoin and OKX.
• Kwon is a wanted individual after Interpol issued a red notice for his arrest.

Do Kwon took to social network Twitter on Wednesday to refute allegations regarding a freeze on crypto assets worth millions. Kwon tweeted in response to a CoinDesk report and said he has “no time to trade, no funds have been frozen. I don’t know whose funds they’ve frozen”.

The tweet was in response to a CoinDesk report which claimed that prosecutors investigating the $40 billion Terra tumble and Kwon’s involvement in the crash froze crypto assets belonging to the Terra CEO himself. CoinDesk cited local news house New1 as the source. 

Per the report, the latest Kwon crypto freeze featured digital assets worth $39.6 million.

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

However, it remains unclear how authorities deduced the source of the cryptocurrency and tied ownership of the assets to the Terraform Labs boss. Terra community member FatManTerra also questioned how South Korean Prosecutors knew which funds to freeze. 

FWIW this is just what the South Korean prosecution is claiming.

The actual methodology used to determine ownership of those coins is being kept secret for some reason and I have serious doubts about whether those are actually Do Kwon’s bitcoins or not. Waiting for evidence.

Wednesday’s claims arrive shortly after prosecutors asked two crypto exchanges – KuCoin & OKC, to freeze 3313 Bitcoin (BTC) allegedly belonging to the Luna Foundation Guard (LFG) although the LFG denied any link between the funds and Kwon.

The 3313 BTC is worth around $67 million with Bitcoin exchanging hands at $19,800 per TradingView data. 

Do Kwon On The Run? 

Do Kwon remains active on Twitter despite being wanted in South Korea and 195 other jurisdictions at press time. Interpol issued a red notice on his arrest and a South Korean court also issued an arrest warrant for the Terraform Labs CEO. 

Terraform responded to the investigations as “high politicized”. Kwon himself also claims to have freedom of movement but did not disclose his location. Authorities reported that the Terra CEO is no longer in Singapore.

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