Do Kwon denies prosecutors iced up $67mn of his cryptocurrency property

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Do Kwon, the co-founder of collapsed cryptocurrency operator Terraform Labs, has denied that South Korean prosecutors iced up an extra $39.6mn of his cryptocurrency property as South Korean government 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 introduced a world manhunt for the 31-year-old crypto entrepreneur in the back of the $40bn implosion of the terraUSD and luna tokens.

“I don’t get the inducement in the back of spreading this falsehood — muscle flexing? However to what finish,” Kwon wrote on Twitter on Wednesday. “I don’t know whose price range they’ve frozen, however excellent for them, hope they use it for excellent.”

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 expansion — had created a virtual pockets on crypto change Binance on September 15.

CryptoQuant added that 3,313 bitcoin price about $67mn were transferred from that luna pockets to KuCoin and OKX over 3 days.

Ultimate month, South Korean prosecutors iced up about $27.4mn of bitcoin held within the KuCoin pockets. OKX just lately accredited government’ calls for to freeze an extra $39.6mn.

However the prosecutors’ place of business declined to mention the way it decided that the property belonged to Kwon, who denied the property had been his.

Seoul’s international ministry stated on Wednesday that Kwon’s passport can be revoked if he didn’t go back it inside two weeks, striking force at the fugitive crypto entrepreneur to go back to South Korea and face fees of monetary fraud and breach of the rustic’s capital marketplace rules.

Interpol has issued a purple understand 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 at the run. He may now not 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 once now not there.

South Korea was once some of the enthusiastic adopters of cryptocurrencies, however the cave in of Terraform Labs has resulted in scrutiny of the in large part unregulated sector.

Crypto professionals stated funding in virtual property had slowed. “Challenge capital has slashed its funding within the sector because the macroeconomic setting deteriorates amid prime inflation and as bitcoin costs proceed to fall,” stated Donghwan Kim of Blitz Labs, a Seoul-based crypto advisory company.


Crucial intelligence at the virtual asset business.

Discover the FT’s protection right here.

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