South Korea seeks to freeze $93m of Bitcoin linked to Terra founder Do Kwon

2 months ago 28

SINGAPORE - South Korean authorities have asked two cryptocurrency exchanges to freeze some US$65 million ((S$93 million) worth of Bitcoin linked to Do Kwon, the founder of the company behind two now-collapsed digital coins.

Kwon is the founder of Terraform Labs, the company behind the algorithmic stablecoin TerraUSD or UST and its sister token Luna. Combined, these coins were worth around US$60 billion before they collapsed in May, sending shockwaves through the crypto industry.

On Thursday, Terraform Labs rejected South Korean charges over the collapse and said the case against Kwon had become "highly politicised."

A spokesman for the firm said in a statement that prosecutors had demonstrated "unfairness and a failure to uphold basic rights guaranteed under Korean law," adding that there's "no reasonable basis" for their accusation of breaches of capital-markets law.

South Korea has sought help from Interpol to find Kwon, after a court last month issued a warrant for his arrest. His location is unknown after Singapore earlier this month said he's no longer there.

Officials have previously suggested Kwon is evading their probe. The Terraform Labs spokesman said the 31-year-old via lawyers "is in contact with all government agencies that have asked to communicate with him."

The spokesman said "he is not on the run and remains actively involved in the management and oversight of Terraform Labs."

The statement followed controversy over a Bitcoin reserve - the Luna Foundation Guard - connected to Kwon.

Kwon and the reserve denied transferring digital tokens after a trail of coin movement prompted South Korea to take steps to freeze assets.

Prosecutors sent requests to crypto exchanges KuCoin and OKX to freeze a total of 3,313 Bitcoins, worth aboutUS $65 milli...

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