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

Do Kwon, the co-founder of collapsed cryptocurrency operator Terraform Labs, has denied that South Korean prosecutors froze a further $39.6mn of his cryptocurrency property 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, price a complete of $67mn and held in exchanges OKX and KuCoin, had now been frozen.

The prosecutors have launched a global 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 information analytics platform, stated final month that the Luna Basis Guard — a non-profit organisation arrange in Singapore to advertise terraUSD’s progress — had created a digital pockets on crypto trade Binance on September 15.

CryptoQuant added that 3,313 bitcoin price 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 just lately accepted authorities’ calls for to freeze a further $39.6mn.

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

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Seoul’s overseas 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 prices of economic fraud and breach of the nation’s capital market legal guidelines.

Interpol has issued a crimson discover 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 situated 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 not there.

South Korea was probably the most 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 property 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.