Kwon’s Virtual Assets, Including Bitcoin, Frozen by South Korean Prosecutors

Prosecutors from South Korea have frozen another $562B worth of virtual asset like Bitcoin that was possessed by Terraform Labs’ head “Do Kwon.” Due to this, he would not be able to utilize a majority of nearly 95B won among the hidden assets. On 5th October, as per the legal community, the Seoul Southern District Prosecutor’s Office-based Group for Financial Securities Crimes is responsible for freezing the more 562B won on this month’s 27th. Kwon’s red arrest warrant had been issued a week ago.

South Korea-based Prosecutors Freeze Another 562B of Kwon’s Virtual Asset Holdings

Apart from that, 388B won (out of approximately 95B won) within Kwon’s assets has in advance been frozen. The allegation due to which this action has been taken is that the Terra founder has supposedly tried to conceal his assets. The agency has collaborated with a couple of the digital asset exchange companies that he tried to conceal. The virtual assets that Kwon transacted contain the funds taken from his Luna Foundation Guard (LFG) Foundation.

The respective venue was constructed by Do Kwon to collect funds for the representative of the Terra founder to have a registration as a registered director as well as to fund Luna and Terra’s price defense. An amount of up to $800M out of nearly $33B, deposited on the behalf of Kwon with the LFG Foundation previously, was utilized to purchase Luna for supporting the asset’s price.

Do Kwon Transfers His Holdings to KuCoin and OkeiX after Arrest Warrant

A wallet for virtual assets was created by the LFG Foundation with almost 3313 BTC tokens on Binance, the biggest exchange of digital assets across the globe, just a day following the issuance of an arrest warrant for Kwon on 14th September. After that, between the 15th and 18th of the same month, the Bitcoin holdings kept on Binance were transacted to KuCoin (another crypto exchange) – nearly 388B won – as well as OkeiX – almost 562B won.

In the previous month, when the arrest warrant was released by a court from South Korea for Kwon, he was accused of infringing the capital markets-related laws. This all started in May 2022, when Terra (UST) – the algorithmic stablecoin introduced by Kwon – suddenly crashed in its value due to its de-pegging.

As a result, the whole crypto market experienced a domino effect and the stablecoin holdings of numerous investors vanished suddenly. Consequently, some crypto exchanges had to file for bankruptcy and the crypto winter started then has been extended for a long period up till now.