Do Kwon Rejects Claims of Authorities Freezing $39.6 Million in Crypto

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Key Takeaways:

  • Do Kwon refuted accusations that bitcoin assets worth millions had been frozen via the social media site Twitter.
  • Authorities seized some of Kwon’s cryptocurrency holdings worth $39.6 million, according to CoinDesk on Wednesday, quoting local Korean media.

On Wednesday, Do Kwon used the social media platform Twitter to deny claims that cryptocurrency assets worth millions had been frozen.

Regarding a CoinDesk report, Kwon tweeted that he had “no time to trade, no funds have been frozen. I don’t know whose funds they’ve frozen”.

According to reports, $40 million that Kwon tried to hide on the cryptocurrency exchanges KuCoin and OKX has been frozen by Korean authorities.

The two cryptocurrency exchanges, with whom Kwon asserts he had no financial dealings, reportedly assisted in the confiscation.

His remark to the cryptocurrency exchanges OKX and KuCoin was in reaction to news from last month that the businesses had worked with law enforcement to freeze 3,313 Bitcoin, which is equivalent to almost $66 million.

However, those reports have also been refuted by Kwon and Luna Foundation Guard, a non-profit organisation established to support the Terra ecology.

Stablekwon said he does not understand the purpose for the dissemination of this rumor. After collecting accusations from 81 investors who suffered significant losses after Terraform Labs’ stablecoin UST lost its peg in May 2022, prosecutors are out for Kwon to make a mistake or even slip a little and suspect the Terraform Labs co-founder of engaging in fraud

Users of Curve Finance drained TerraUSD liquidity, driving up the price of TerraUSD, which in turn caused LUNA, a family coin intended to support UST to maintain its dollar peg, to fall in value. 

Kwon claimed a week ago on Twitter that he had not stolen any money from his business and that neither TerraForm Labs nor Luna Foundation Guard had blocked any money. Interpol, often known as the International Criminal Police Organisation, had at the time published a red notice for his arrest.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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