Do Kwon responds to reports of South Korea freezing his $40m in crypto

Do Kwon responds to ‘falsehood’ reports of South Korea freezing his $40million in crypto

The saga of the Terraform Labs, the implosion of which has sent shockwaves across the cryptocurrency market, continues to draw media attention, as South Korean and international authorities are taking more interest in the platform’s CEO Do Kwon.

As it happens, South Korean prosecutors have frozen 56.2 billion won ($39.66 million) in digital assets, including Bitcoin (BTC), owned by Do Kwon through two crypto exchanges, as Korean local media outlet News1reported on October 5.

Shortly after the news started to circulate, Do Kwon retorted on Twitter, referring to such reports as “spreading falsehood” and claiming he doesn’t “even use Kucoin and OkEx, have no time to trade, no funds have been frozen.” As he stressed in his tweet:

I don't get the motivation behind spreading this falsehood – muscle flexing? But to what end?

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 🙏 https://t.co/gSucKfqsxj
— Do Kwon 🌕 (@stablekwon) October 5, 2022

Headed by Director Seong Dan, the Seoul District Prosecutors’ Joint Financial Securities Crime Investigation Team froze these assets on September 27, adding up to the previously frozen 38.8 billion won that Do Kwon allegedly tried to hide.

As Finbold reported on the same day, more than 3,313 BTC were suddenly transferred from the Terra (LUNA) CEO’s Luna Foundation Guard (LFG) crypto wallet to two overseas digital asset exchanges – KuCoin and OKX, shortly after an arrest warrant was issued for Kwon.

Do Kwon denies everything

It needs to be mentioned that, on September 14, a court in the South Korean capital issued an arrest warrant for Kwon and five other people over violations of the country’s Capital Markets Act, whereas the Supreme Prosecutors Office’s Financial Crimes Unit said they were all in Singapore at the time.

After denying he was on the run after the issuance of the arrest warrant, Do Kwon again took to Twitter to reiterate that he was not hiding from the authorities, despite prosecutors claiming otherwise and even urging Interpol to intervene.