Terra’s CEO Kwon Do-Hyung a.k.a Do Kwon who has an arrest warrant is now at the receiving end of the authorities. As per local sources, South Korean prosecutors have frozen 3,313 BTC that was suddenly transferred to two overseas digital asset exchanges.
As of 1 pm on September 27th, there had been a significant quantity of Bitcoin transferred, about 95 billion won [around 66.59 million USD].
The Luna Foundation Guard [LFG] wallet was unexpectedly formed on September 15th on Binance, according to on-chain data provider CryptoQuant. 3313 BTC were sent to the wallets of Kucoin and OKX.
LFG is a nonprofit organization that CEO Kwon founded in January to defend the price of LUNA among other things.
The transfer was quickly discovered by the merger team, who then requested that Kucoin freeze the transferred 1354 BTC. Meanwhile, OKX is allegedly disregarding the prosecution’s plea to freeze assets,
The 1959 BTC that was transferred here may have migrated to another exchange as a result, authorities alleged.
The Securities Crimes Joint Investigation Team and the Seoul Southern District Prosecutor’s Office have been conducting a thorough investigation since mid-May when the prosecution requested that Kwon’s assets be frozen, the local sources reported.
Officials To Investigate If The Terra Founder Used It As An Evacuation Fund
The circumstances of the transfer, including the potential use of the transferred BTC for money laundering, concealing, and espionage, are reportedly being extensively examined by prosecutors.
A former prosecution official said,
In a normal criminal investigation, if a large amount of money is moved from the suspect’s account after the issuance of an arrest warrant, it is natural to conduct an intensive investigation with suspicion of laundering and concealment. We must first check whether it will be used as an evacuation fund.
The International Criminal Police Organization [Interpol] is said to have issued a red alert for the co-founder of Terraform Labs only a few weeks after South Korean authorities issued an arrest order for Do Kwon and his friends.
As reported by TronWeekly, South Korean prosecutors accuse Kwon and five other Terraform Labs affiliates of violating the country’s capital markets law. Kwon also faces additional charges that prosecutors have not divulged.
Kwon refuted charges of hiding in a September 17 tweet and stated that he was willing to work with “any government agency that has shown interest to communicate.”