South Korean prosecutors confirm they are trying to freeze bitcoin assets linked to Do Kwon, who denies moving tokens • TechCrunch
Luna Foundation Guard (LFG), a Bitcoin reserve co-founded by Do Kwon as a security backstop to protect the Terra ecosystem, refuted claims that it had transferred digital tokens to other crypto exchanges after South Korea issued an arrest warrant for Kwon 14 . September .
South Korean prosecutors say they have asked two crypto exchanges — KuCoin and OKX — to freeze a total of 3,313 Bitcoins, estimated at $67 million, and allege the transfer was controlled by Kwon.
The Guard said in response that it has not “created any new wallets or moved Bitcoins or other tokens held by LFG since May 2022.”
A spokesperson for the South Korean Prosecutor’s Office in Seoul confirmed to TechCrunch that it had asked two crypto sites to freeze those allegedly linked to Kwon’s assets.
LFG fund $BTC the wallet is:
bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q
LFG has not created any new wallets or moved $BTC or other tokens held by LFG since May 2022.@CoinDesk @iamsandali @cryptoquant_com
— LFG | Luna Foundation Guard (@LFG_org) 27 September 2022
KuCoin cooperated with Korean prosecutors, freezing 1,354 Bitcoins, worth about $26.8 million, that were transferred to the exchange, while OKX did not respond to prosecutors’ request, the spokesperson said, confirming an earlier report by CoinDesk.
CryptoQuant, a Blockchain data analysis platform, told CoinDesk that Luna Foundation Guard’s digital wallet was created on crypto exchange Binance on September 15, then 3,313 Bitcoins were transferred to Kucoin and OKX.
Kwon, whose whereabouts are currently unknown, said on Twitter: “There is no ‘payout’ as claimed. I have not used Kucoin or OKEX for at least the past year, and no funds from TFL, IFG or other entities have been frozen.” “
What has probably been the most surprising thing in all of this is the amount of misinformation being spread.
There is no “payout” as claimed, I have not used kucoin or okex in the last year at least, and no funds from tfl, lfg or other entities have been frozen.
— Do Kwon 🌕 (@stablekwon) 28 September 2022
The new development escalates the investigation into Kwon, who is also subject to an Interpol warrant for law enforcement agencies worldwide to find and arrest the entrepreneur. Kwon said Monday in a tweet that he was not hiding.
South Korean authorities declined to comment on the Luna Foundation Guard tweet. TechCrunch has reached out to KuCoin and OKX for comment.
