Blockchain

Do Kwon denies prosecutors froze $67mn of his cryptocurrency belongings

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Do Kwon, the co-founder of collapsed cryptocurrency operator Terraform Labs, has denied that South Korean prosecutors froze an extra $39.6mn of his cryptocurrency belongings as South Korean authorities started the method to revoke his passport.

The Seoul Southern District Prosecutors’ Workplace stated on Thursday that Kwon’s bitcoin holdings, value a complete of $67mn and held in exchanges OKX and KuCoin, had now been frozen.

The prosecutors have launched an international manhunt for the 31-year-old crypto entrepreneur behind the $40bn implosion of the terraUSD and luna tokens.

“I don’t get the motivation behind spreading this falsehood — muscle flexing? However to what finish,” Kwon wrote on Twitter on Wednesday. “I don’t know whose funds they’ve frozen, however good for them, hope they use it for good.”

His denial got here after CryptoQuant, a blockchain knowledge analytics platform, stated final month that the Luna Basis Guard — a non-profit organisation arrange in Singapore to advertise terraUSD’s development — had created a digital pockets on crypto alternate Binance on September 15.

CryptoQuant added that 3,313 bitcoin value about $67mn had been transferred from that luna pockets to KuCoin and OKX over three days.

Final month, South Korean prosecutors froze about $27.4mn of bitcoin held within the KuCoin pockets. OKX not too long ago accepted authorities’ calls for to freeze an extra $39.6mn.

However the prosecutors’ workplace declined to say the way it decided that the belongings belonged to Kwon, who denied the belongings have been his.

Seoul’s international ministry stated on Wednesday that Kwon’s passport can be revoked if he didn’t return it inside two weeks, placing stress on the fugitive crypto entrepreneur to return to South Korea and face charges of financial fraud and breach of the nation’s capital market legal guidelines.

Interpol has issued a red notice for Kwon after he alleged refused to co-operate with a South Korean investigation into the meltdown of his algorithmic cash. Kwon has but to be positioned however has denied that he’s on the run. He couldn’t be reached for remark.

South Korean prosecutors stated Kwon left for Singapore on the finish of April. Police within the city-state stated final month that he was now not there.

South Korea was some of the enthusiastic adopters of cryptocurrencies, however the collapse of Terraform Labs has led to scrutiny of the largely unregulated sector.

Crypto consultants stated funding in digital belongings had slowed. “Enterprise capital has slashed its funding within the sector because the macroeconomic atmosphere deteriorates amid excessive inflation and as bitcoin costs proceed to fall,” stated Donghwan Kim of Blitz Labs, a Seoul-based crypto advisory agency.

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