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- Authorities believe Kwon is on the run
- Do Kwon contradicts the basis of the new action South Korean authorities took
- LUNA Price at the time of writing – $2.54
Terraform Labs Ltd. Kwon Do-Hyung, also known as Do Kwon, the founder, and chief executive officer of Ltd. has denied being involved in the alleged transfer of funds from Luna Foundation Guard Ltd. to crypto exchanges OKX and KuCoin.
Luna Foundation Guard, based in Singapore, was primarily tasked with protecting Terraform’s now-defunct stablecoin’s dollar peg by providing additional support.
Following the alleged transfer of approximately 3,313 BTC from wallet addresses belonging to LFG to these exchanges between September 15 and 18, South Korean prosecutors earlier this week requested that global cryptocurrency exchanges KuCoin and OKX freeze Bitcoin.
South Korean investors filed a lawsuit against Terraform Labs
According to information provided by prosecutor Choi Sung-kook of the Seoul Southern District Prosecutors’ Office to Forkast, KuCoin and OKX have frozen 1,354 BTC and 1,959 BTC associated with Kwon.
The suspension of Terraform and Kwon’s assets is part of South Korea’s ongoing investigation into Terra-LUNA, which began in May.
In May of this year, Terraform’s algorithmic stablecoin TerraUSD Classic (previously TerraUSD) and its sister cryptocurrency Luna Classic (previously LUNA) both collapsed, erasing an estimated US$40 billion in investor wealth.
Following the collapse, which sparked the investigation, South Korean investors brought fraud charges against Terraform Labs and its executives in a lawsuit.
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The exact location of Kwon is still unknown
On September 14, the Seoul Southern District Prosecutor’s Office, which is in charge of the case, issued an arrest warrant for Kwon and his associates and requested that the Ministry of Foreign Affairs revoke their passports.
In addition, the prosecutors requested that the International Criminal Police Organization (Interpol) issue a “Red Notice” requesting that international law enforcement locate and temporarily arrest an individual. On Monday, prosecutor Choi informed Forkast that such a notice had been issued.
Kwon said on Tuesday that he is not hiding, despite the fact that the police are looking for him in 195 Interpol member countries, where his exact location is still unknown.
Choi of the Seoul Southern District Prosecutor’s Office responded to Kwon’s claim by telling Forkast that authorities do indeed believe Kwon is on the run.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
