Prosecutors in South Korea have froze Do Kwon's crypto assets, valued at around $40 million

By: Michael Wilson

Prosecutors in South Korea have froze Do Kwon's crypto assets, valued at around $40 million

October 6, 2022 10:20 PM

Worldwide authorities have been actively seeking Terra co-founder Do Kwon's arrest. Numerous lawsuits have been filed against the executive, with the plaintiffs alleging that he is responsible for the destruction of LUNA and UST, two Terra ecosystem cryptocurrencies. The Red Notice was issued by Interpol, the International Criminal Police Organization, towards the end of September, seeking the whereabouts of the Terra founder.

 

In addition, Kwon and five others have been charged with crimes by Korean authorities, including violations of capital-markets law. Prosecutors have also recently confirmed the existence of "circumstantial evidence of escape" in regards to Kwon.

 

Bitcoin and other assets belonging to Do Kown have reportedly been frozen

 

It has been reported that South Korean prosecutors have frozen Bitcoin and other crypto assets worth about $40 million belonging to the Terra executive. As reported by the local press,

 

"On February 27, the Seoul Southern District Prosecutors' Joint Financial Securities Crime Investigation Team (Director Dan Seong-han) reportedly froze an additional 56.2 billion won on top of the 38.8 billion won they had already frozen to investigate the 95 billion won in assets that Kwon had tried to hide."

 

Do Kwon apparently attempted to conceal the assets on two separate virtual asset exchanges, but their cooperation led to a freeze on all of the funds.

 

 

The Terra Founder had already addressed the recent allegation and provided a swift response to the current situation at the time of this report's publication. He then retweeted one of the news items with the following:

 

"I can't figure out why people are spreading this untruth (showing off, maybe? To what end though? I have neither the time nor the ability to trade on Kucoin or OKEx, and neither have they frozen any of my funds. To whomever they have frozen their accounts, I say, "Good for them; may they put the money to good use."

 

 

Keep in mind that at the very end of September, it was reported that Luna Foundation Guard [LFG] sent around 3313 Bitcoins worth over $69 million to two cryptocurrency exchanges located outside of South Korea. Similar action was taken after Kwon's arrest warrant was issued on September 14.

 

Along with this, it was also disclosed that South Korean prosecutors had successfully frozen some of the transferred Bitcoin. On September 15th, it was discovered that the LFG had suddenly opened a Binance wallet from which it had subsequently sent 3313 BTC to wallets on Kucoin and OKX. However, Luna Foundation Guard and Do Kwon refuted the prosecution's claims that they had transferred money and fought other charges.