South Korea attempts to freeze bitcoin linked to UST, luna founder
South Korean authorities are requesting the arrest of Do Kwon, co-founder and CEO of Terraform Labs. His company is behind the now collapsed cryptocurrencies terraUSD and luna. South Korean prosecutors are now seeking to freeze bitcoin linked to Kwon.
Woohae Cho | Bloomberg | Getty Images
South Korean authorities sought Kwon’s arrest this month, claiming he is on the run. Prosecutors said Interpol, the global police organization, has issued a “Red Notice” for Kwon. Such notices are issued for refugees who are wanted either for prosecution or to serve a sentence.
Kwon, however, insists he is not on the run, saying on Twitter on Tuesday that he is “making zero effort to hide.” The crypto entrepreneur claims he goes on trips and is in the living room coding.
Public bickering continues
Prosecutors in Seoul’s southern district declined to comment on how they identified bitcoin as being linked to Kwon.
But research from analytics platform CryptoQuant suggests that Luna Foundation Guard (LFG) set up a digital wallet on September 15 and sent 3,310 bitcoins to KuCoin and OKX. Luna Foundation Guard is a non-profit organization that aims to promote the Terra blockchain, created by Kwon’s company Terraform Labs.
LFG responded on Tuesday, saying they had not created any new wallets, or moved bitcoin or other digital currencies around since May 2022. They also posted their wallet address on Twitter.
But CryptoQuant replied, “It’s the public one,” suggesting that Luna Foundation Guard has another wallet address that is not explicitly linked to the nonprofit.
Kwon also refuted claims that bitcoin was moved.
He said on Twitter that there was no attempt to “cash out” and that he has not used KuCoin or OKX for “at least the last year.” He added that no funds from Terraform Labs, LFG or other entities have been frozen.
KuCoin told CNBC on Wednesday that it is “willing to cooperate with all global law enforcement agencies in matters of investigation related to the origin and freezing of suspect assets.”
It added that in relation to Kwon and the request by South Korean prosecutors to freeze funds linked to the crypto entrepreneur, “we would like you to first raise the issue with any related authorities and clarify their position on the matter.”
CNBC told KuCoin that it had already spoken to the authorities. A spokesperson for KuCoin said the company “cannot disclose any details in order not to interfere in the matter.”
OKX has not yet responded to a request for comment.
