Do Kwon, Terra Co-founder, Denies New Reports of $39.6M Frozen Funds

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Terra LUNC Community Approves New Measure to Reduce Tax Burn
Terra LUNC Community Approves New Measure to Reduce Tax Burn

Terra’s Do Kwon has been in the news more than usual since South Korea issued an arrest warrant for him. Several developments have occurred in the aftermath of the arrest warrant, with speculations about his arrest evasion gaining traction.

Regardless, Kwon has habitually denied all reports and speculations about him. According to recent reports, South Korean authorities have frozen an additional ($39.6 million) in Terraform Labs cryptocurrencies. However, he has come to deny this claim.

Kwon posted on Twitter, where he appears to be quite active, to refute the claims of frozen funds.

“I don’t get the motivation behind spreading this falsehood – muscle flexing? But to what end? Once again, I don’t even use Kucoin and OkEx, have no time to trade, no funds have been frozen,” he said in a tweet Wednesday, as a reply to the recent reports. 

Kwon further noted that if South Korean authorities have frozen someone’s funds, they are oblivious of whose funds they are.  “I don’t know whose funds they’ve frozen, but good for them, hope they use it for good,” he added.

Related: The community of Terra Classic declares its independence from Do Kwon; Says LUNC 1.2% Tax Burn Author

According to a South Korean local news outlet, South Korea froze additional cryptocurrency worth 56.2 billion won ($39.6 million) belonging to Do Kwon. This development continued just a week after fxcryptonews reported that South Korean authorities discovered approximately 3,310 BTC ($67M) moved by Kwon in response to reports of his arrest warrant.

According to data, the funds were transferred to KuCoin and OKX between September 15 and September 28. KuCoin froze the funds in its possession, approximately 1,354 BTC, in response to a request from the authorities. Kwon and the Luna Foundation Guard, however, denied the reports.

Subsequently, Terra informant FatMan – renowned for his criticism of Kwon and Terra – revealed that he believed Kwon did not make the transaction. “For once, I would lean towards believing Do Kwon on this one,” he said. As similar claims surface, Kwon has also come up to debunk them, alleging that they are all false.

However, Terra informant FatMan revealed some intriguing Terraform Labs information in a recent tweet on Wednesday. Despite Kwon’s claims that he and the company lost almost everything in the crash, he claims that Terraform Labs controls a substantial amount of wealth stored in several company accounts.

FatMan said:

‘A verified source has confirmed that Terraform Labs is “extremely cash-rich” with “hundreds of millions in registered company accounts,” despite the total collapse of the Terra project back in May.’

Related also: Terra News: Do Kwon Transfers $250k Worth of USDC to a Mysterious Wallet Despite Being Wanted for Arrest

The Terra Co-founder Still At Large

In the midst of these rumours, Terraform Labs has come to Kwon’s defence, claiming that he has broken no specific Korean laws because Terra is not classified as a security by the financial authorities.

Kwon’s whereabouts are unknown, though The Crypto Basic recently reported that the 31-year-old software developer might have been smuggled to North Korea from Singapore. Despite his assertion that he is willing to cooperate with authorities, South Korea has revealed that he is on the run, with Interpol issuing a red notice on his behalf.

Remember that the Do Kwon global search is still ongoing after Interpol issued a Red Notice for Terra Founder.