On October 5, the founder and CEO of Terraform Labs Do Kwon denied the report that South Korean prosecutors had frozen about 56.2 billion won (39.6 million USD) of his crypto.
“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. I don’t know whose funds they’ve frozen, but good for them, hope they use it for good.”
The report came about two weeks after South Korean authorities ordered two cryptocurrency exchanges OKX and KuCoin to freeze 3,313 Bitcoin (BTC), worth about $67 million. As reported, Do Kwon transferred these Bitcoins to the above two crypto exchanges shortly after the arrest warrant was issued on Sep 14. While his current location has not been revealed, Do Kwon still insists that he is not trying to hide and run away from anything.
However, on September 18, South Korean prosecutors confirmed that Do Kwon was obviously “on the run”. And, according to the latest announcement of the Korean government, the founder of Terraform Labs, Do Kwon, must return to the country to return his passport. The 31-year-old CEO has 14 days to surrender his passport or it will be revoked.
In addition to the arrest warrant, the Seoul Southern District Prosecutors’ Office and the Securities Crime Investigation Team are prosecuting and freezing Do Kwon’s assets. According to Bloomberg, the red notice from Interpol will take effect globally, making it difficult for criminals to move to other places. Do Kwon also cannot use his visa and move between different countries.
In addition to Do Kwon, the arrest warrant also includes five others for alleged capital markets law violations. On the other side, Terraform Labs said South Korean prosecutors overextended their authority in seeking a warrant for the arrest of CEO Do Kwon, and affirmed that this allegation was just a dirty trick related to politics.
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