Do Kwon Moved LFG’s Bitcoin Following His Arrest, According to Prosecutors


Prosecutors in South Korea have upgraded their case against Do Kwon, CEO of Terraform Labs, by requesting KuCoin and OKEx to freeze $67 million worth of Bitcoin allegedly tied to the Luna Foundation Guard.

Supposedly, South Korean authorities are attempting to freeze Bitcoin worth $67 million related to the sought Terra leader Do Kwon.

The Seoul Southern District Prosecutor’s Office has requested that KuCoin and OKEx freeze 3,313 Bitcoin reportedly belonging to Terra’s Luna Foundation Guard. The prosecution claimed that LFG transferred the monies to the exchanges on September 15, one day after a Seoul court issued an arrest warrant for Kwon. According to a Tuesday CoinDesk Korea story, crypto researcher CryptoQuant said that the money originated from LFG. Prior to Terra’s $40 billion bankruptcy in May, Kwon oversaw the LFG fund and made many multimillion-dollar Bitcoin transactions.

At the time of publication, the Seoul Southern District Prosecutors’ Office has not replied to Crypto Briefing’s request for comment. However, according to Bloomberg, an official verified the story earlier today. “Based on transaction patterns, nearby flows, and important non-public information, CryptoQuant suggested new Bitcoin addresses held by LFG,” CryptoQuant informed Bloomberg. Notably, neither OKX nor KuCoin has a Korean registration. According to CoinDesk Korea, KuCoin consented to the prosecutor’s request, however, OKX remained mute.

As the quest for Kwon continues, this is the latest step in what has become one of the craziest crypto sagas. The prosecution revealed on Monday morning that Interpol had added Kwon to its red notice list, thereby rendering the co-founder of Terraform Labs a fugitive in 195 nations. On the same day, though, Kwon appeared on Twitter to tell his fans that he was “making no attempt to conceal.” In a probable indication that he did not think the red alert had been issued, he also noted that his name was not included on Interpol’s website.

If the prosecutor’s and CryptoQuant’s findings prove to be accurate, the Bitcoin transactions are likely to raise more questions about how Kwon supervised Terra’s downfall and its aftermath. In the last year, Kwon has made no secret of his abrasive personality, but he and Terraform Labs have been less open when addressing economics.

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