South Korea Reportedly Freezes Do Kwon’s Crypto Worth $40M — Luna Founder Says the Funds Are Not His – Regulation Bitcoin News

South Korean authorities have apparently frozen $40m in cryptocurrency assets, including bitcoins, that were allegedly owned by Luna founder Do Kwon. Kwon, however, denied any of the funds were frozen. “I don’t even use Kucoin and Okex, have no time to trade, no funds have been frozen,” he insisted.

Prosecutors Say They’ve Frozen Do Kwon’s Crypto, Including Bitcoin

South Korean prosecutors have reportedly confiscated nearly $40 million worth of crypto assets allegedly belonging Kwon Dohyeong, Terraform Labs founder (also known under Do Kwon). Citing Korean publication News1, journalist Colin Wu tweeted Wednesday:

South Korean authorities have placed $39.66million worth of cryptocurrency assets in a frozen state. This includes BTC owned by Do Kwon via two exchanges. After being issued with an arrest warrant, Do Kwon was previously disowned by LFG of trying to transfer the 3,313 BTC.

The coins were frozen at cryptocurrency exchanges Kucoin and Okx, the publication noted, adding that the two trading platforms have agreed to freeze Kwon’s crypto at the request of the prosecution.

South Korean prosecutors announced last month they wanted to block 3,313 bitcoins linked to Kwon. These were transferred from a wallet that was linked to Luna Foundation Guard. (LFG) However, the organization denied the allegation, insisting that it “hasn’t created any new wallets or moved BTC or other tokens held by LFG since May 2022.”

Kwon used Twitter to claim that the $39.66M in crypto he was accused of having been frozen by authorities to counter the allegations. “I don’t get the motivation behind spreading this falsehood – muscle flexing? But to what end?” the Luna founder tweeted Tuesday, adding:

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.

Kwon was issued an arrest warrant by a South Korean court on September 14. After the fall of crypto luna (now called Luna classic (LUNC), or stablecoin terrausd, (UST), he is being accused of fraud. Interpol also issued a Red Notice to him. “A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action,” Interpol’s website details, adding that “Red Notices are issued for fugitives wanted either for prosecution or to serve a sentence.”

The Luna founder’s whereabouts are currently unknown. While he had been believed to be living in Singapore at the time, Singapore’s police recently confirmed that he has not yet returned home. Kwon has maintained that he is not “on the run,” tweeting recently that he is “making zero effort to hide.”

Do you think South Korean prosecutors have frozen Do Kwon’s crypto? Please comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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