November 30, 2022

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Do Kwon denies prosecutors froze $67mn of his cryptocurrency assets

Do Kwon, the co-founder of collapsed cryptocurrency operator Terraform Labs, has denied that South Korean prosecutors froze an added $39.6mn of his cryptocurrency assets as South Korean authorities started the course of action to revoke his passport.

The Seoul Southern District Prosecutors’ Place of work claimed on Thursday that Kwon’s bitcoin holdings, worthy of a whole of $67mn and held in exchanges OKX and KuCoin, experienced now been frozen.

The prosecutors have released an global manhunt for the 31-yr-old crypto entrepreneur powering the $40bn implosion of the terraUSD and luna tokens.

“I really don’t get the motivation behind spreading this falsehood — muscle flexing? But to what close,” Kwon wrote on Twitter on Wednesday. “I really do not know whose funds they’ve frozen, but superior for them, hope they use it for good.”

His denial came after CryptoQuant, a blockchain facts analytics platform, claimed past thirty day period that the Luna Foundation Guard — a non-financial gain organisation established up in Singapore to market terraUSD’s growth — had developed a digital wallet on crypto trade Binance on September 15.

CryptoQuant included that 3,313 bitcoin value about $67mn experienced been transferred from that luna wallet to KuCoin and OKX more than a few times.

Last thirty day period, South Korean prosecutors froze about $27.4mn of bitcoin held in the KuCoin wallet. OKX just lately acknowledged authorities’ needs to freeze an additional $39.6mn.

But the prosecutors’ business office declined to say how it established that the property belonged to Kwon, who denied the property ended up his.

Seoul’s foreign ministry reported on Wednesday that Kwon’s passport would be revoked if he did not return it in two weeks, putting stress on the fugitive crypto entrepreneur to return to South Korea and experience expenses of economic fraud and breach of the country’s capital industry rules.

Interpol has issued a pink detect for Kwon just after he alleged refused to co-work with a South Korean investigation into the meltdown of his algorithmic coins. Kwon has nevertheless to be located but has denied that he is on the operate. He could not be achieved for remark.

South Korean prosecutors claimed Kwon remaining for Singapore at the stop of April. Law enforcement in the town-state claimed final month that he was no lengthier there.

South Korea was one of the most enthusiastic adopters of cryptocurrencies, but the collapse of Terraform Labs has led to scrutiny of the largely unregulated sector.

Crypto specialists claimed financial investment in electronic belongings had slowed. “Venture cash has slashed its financial commitment in the sector as the macroeconomic ecosystem deteriorates amid large inflation and as bitcoin charges keep on to fall,” mentioned Donghwan Kim of Blitz Labs, a Seoul-based crypto advisory agency.


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Take a look at the FT’s protection below.