Terra form Labs CEO denies freezing Bitcoin assets
The TerraForm Labs CEO Kwon Do-hyung, also known as Do Kwon, denied reports on Wednesday that South Korean prosecutors have frozen Bitcoin BTC USD assets worth 56.2 billion won $39.6 million of the Terra Luna Foundation.
South Korea's News 1 reported that the Joint Financial Securities Crime Investigation Team of the Seoul Southern District Prosecutors froze 56.2 billion won on September 27. This is in addition to the previously frozen 38.8 billion won of 95 billion won in assets Kwon had tried to hide.
In response, Kwon said he had no time to trade and that no funds had been frozen.
Why is it that people are so crazy about spreading falsehood — muscle flexing? Kwon said something. I don't even use Kucoin and OkEx, I don't have 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. Reports from last month said the exchanges had worked with law enforcement to freeze 3,313Bitcoin, valued at around $66 million.
The allegations have been refuted by Kwon and Luna Foundation Guard, a nonprofit organization that was established to support the Terra ecosystem.
Kwon claimed a week ago on Twitter that he had not stolen any money from his business and that neither TerraForm Labs nor the Luna Foundation Guard had frozen any money.
Interpol had already issued a red notice for his arrest.
According to South Korean prosecutors, the notice required law enforcement to work with one another to find and apprehend Kwon.
Kwon had been disputing that he was on the run and denied his identity through his Twitter account for at least a month.
Kwon said his firm and himself were cooperating with authorities and had nothing to hide.
On Sept. 15, a South Korean court issued an arrest order for the founder of Terra, charging him with breaking capital market regulations.
In May after the collapse of the algorithmic stable coin, TerraUSD, which destroyed $40 billion, the warrant also targeted five other Singapore citizens.