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


South Korean authorities have asked crypto exchange OKX and Kucoin to freeze 3,313 Bitcoin (BTC) allegedly linked to Do Kwon, the co-founder of Terraform laboratory Terraform Labs.

Kwon, who is currently on the run from the Korean authorities in the securities violation case, reportedly created a new wallet on September 15, just a day after a Korean court issued an arrest warrant against the fugitive crypto founder.

According to crypto analysis group Cryptoquant, a new BTC wallet was created under the name Luna Foundation Guard (LFG), and a total of 3,313 BTC was then transferred to the KuCoin and OKX exchange.

KuCoin received a total of 1,354 BTC, which was frozen immediately after the transfer, while OKX reportedly ignored requests from authorities. Thus, a total of 1,959 BTC could not be frozen and could be moved to other platforms.

Cointelegraph reached out to both crypto exchanges for confirmation, but did not receive a response by press time.

The movement of BTC from the LFG wallet has raised many eyebrows as it contradicts Kwon’s early claims that they used all the BTC in tLFG reserves to defend the TerraUSD Classic (USTC) peg.

Related: Terra co-founder Do Kwon says he’s “making zero effort to hide” after Interpol notice

Prior to the issuance of his arrest warrant on September 14, Kwon claimed that he was neither under investigation nor contacted by any authorities, despite numerous reports of several investigations in South Korea. However, immediately after the arrest warrant was released, Kwon reportedly fled Singapore, forcing authorities to seek help from Interpol.

On September 26, Interpol issued a red notice against Kwon, confirming his fugitive status. However, despite all the evidence and international notice against him, Kwon continues to tweet every time, claiming otherwise.

The collapse of the $40 billion Terra ecosystem led to a crypto market crash that wiped out nearly a trillion dollars from the crypto market. Even after such chaos, Kwon continued to garner support from some sections of the community as he maintained his innocence and claimed that he had lost everything in the collapse.