Terra Founder Cash Out 3k Bitcoin Following Interpol Alert?
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According to multiple reports, South Korean authorities have ordered crypto exchanges OKX and KuCoin to freeze assets linked to Terra founder Do Kwon. In total, the platforms froze more than 5,000 BTC, or about $60 million at the current market price.
As reported by Bitcoinist, South Korean authorities launched an investigation against the founder of Terra (LUNA) and the company behind the cryptocurrency, Terraform Labs. Authorities concluded that Kwon had allegedly violated the country’s securities laws and issued a warrant for his arrest.
Events came to a head yesterday when the International Criminal Police Organization (Interpol) joined the effort and issued a “Red Notice” against Terra’s founder, an arrest warrant that can be enforced by members of the law enforcement organization.
Do Kwon denied the existence of an arrest warrant and said the following about his whereabouts, he was suspected to be somewhere in Singapore after its operation was moved from South Korea:
I write code in my living room (…). Yeah, like I said, I don’t make any effort to hide, I go for walks and malls, no CT (Crypto Twitter) has come across me in the last couple of weeks.
Now law enforcement has moved to cripple Kwon’s financial resources. According to a Bloomberg report, Terra’s founder started transferring Luna Foundation Guard (LFG) funds after an Interpol red notice.
LFG is an entity created by Terraform Labs to protect the peg of the crashed algorithmic stablecoin TerraUSD (UST). These funds were allegedly under the control of the community without the control of Kwon or other members of the company.
South Korea steps up efforts to capture Terra founder Do Kwon
According to a report by CoinDesk Korea, the funds have been transferred since September 15th until 18thAs mentioned, about 3,300 were transferred to KuCoin and about 1,950 to OKX. Bitcoin funds were transferred in 4-5 transactions.
OKX was initially reluctant to cooperate with orders to freeze the fund, but now appears to be working with South Korean authorities. Exchange representative said:
We have suspended the affected account and will make every effort to cooperate with the relevant law enforcement authorities as necessary.
According to the report, the Seoul Southern District Prosecutor’s Office and the Securities Crimes Joint Investigation Team suspect the funds are part of a money laundering scheme that allows Do Kwon to avoid an arrest warrant.
At the time of writing, Do Kwon is still at large and his current whereabouts are unknown. South Korean agencies are allegedly “recruiting” to step up their efforts to catch Terra’s founder.