More Than 3000 BTC Transfers Took The Spotlight

These transactions took place after Do Kwon’s arrest warrant
Transfers worth 3,313 BTC were made from the LFG account
KuCoin has frozen the transferred 1,354 BTC

Following the issuance of an arrest warrant for Terraform Labs founder and CEO Do Kwon by South Korea, a suspicious transfer totaling $60 million was discovered.

According to reports, the transfer occurred from a LUNA Foundation Guard (LFG) wallet to KuCoin and OKX wallets.

South Korea getting wallets frozen

The report stated that the LUNA Foundation Guard’s virtual asset account was created on Binance only on September 15 due to ongoing investigations in South Korea against Terraform’s CEO.

From the LFG account, 3,313 BTC (or 66.65 million dollars) were transferred to two overseas KuCoin and OKX accounts. Between September 15 and September 18, the coins were moved around multiple times.

The Securities Crimes Joint Investigation Team and the Seoul Southern District Prosecutor’s Office both wanted to freeze those accounts, and they also asked KuCoin and OKX to do the same.

While OKX has refused to take any action regarding the remaining 1,959 BTC, KuCoin has frozen the transferred 1,354 BTC.

Prosecutors in South Korea are particularly concerned about this transfer being used for money laundering. It is important to note that neither of these exchanges is regulated in South Korea at this time.

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Is Kwon in even more trouble?

The Terra blockchain, its native stablecoins TerraUSD (UST) and Luna (LUNA), and their respective histories are quite turbulent. Do Kwon and Daniel Shin establish Terraform Labs in Seoul in 2018?

In 2019, the duo introduced the Terra blockchain and the UST and LUNA cryptocurrencies that go along with it. In May 2022, the entire Terra ecosystem collapsed as a result of LUNA’s destabilization.

The global crypto-ecosystem crashed as a consequence of this. Terraform Labs and Kwon were assessed a tax penalty of $78.4 million by the South Korean National Tax Service. Kwon’s passport was soon confiscated by the local authorities.

The South Korean government requested that Interpol issue a Red Notice against him just yesterday. Kwon acknowledged in an interview that the TerraUSD stablecoin’s demise may have been caused by a Terraform member.

Kwon, on the other hand, has been active on Twitter, reiterating that he is not hiding out and that the business is working with interested government agencies to cooperate.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing