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South Korea to Freeze Bitcoin Accounts Linked to Do Kwon

South Korean prosecutors are seeking to freeze assets linked to Do Kwon, the crypto entrepreneur they suspect of breaking securities laws. If successful, this would prevent Kwon from accessing or using these assets.

September 27, 2022
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South Korean prosecutors are seeking to freeze assets linked to Do Kwon, the crypto entrepreneur they suspect of breaking securities laws. If successful, this would prevent Kwon from accessing or using these assets.
Prosecutors have asked crypto exchanges KuCoin and OKX to freeze a total of 3,313 Bitcoins, worth around $67 million at current prices. The coins were moved to the exchanges from a wallet linked to Kwon's Luna Foundation Guard, CoinDesk reported on Tuesday. An official at the Seoul Southern District Prosecutors' Office confirmed the CoinDesk story but declined to comment further.
The representatives for KuCoin and OKX have not yet responded to requests for comment.
South Korea has asked Interpol for help in finding Kwon, whose Terra stablecoin ecosystem collapsed in May, wiping out an estimated $60 billion. Kwon’s whereabouts are unknown after Singapore’s government said earlier this month that he is no longer in the country.
On Monday, 31-year-old Kwon took to Twitter to say that he is not making any effort to hide. He added that he goes for walks and to the mall, but did not disclose his current location.
A new wallet address believed to belong to the LFG was created on Sept. 15, according to researcher CryptoQuant. After that, a total of 3,310 Bitcoins were moved from the wallet to KuCoin and OKX, CryptoQuant said. This comes after South Korean prosecutors said on Sept. 14 that a court had issued a warrant for Kwon’s arrest.
According to CryptoQuant, LFG owns new Bitcoin addresses that can be identified based on transaction patterns, adjacent flows, and material non-public information. This was stated in an emailed statement from the researcher.
The TerraUSD stablecoin's peg to the US dollar is maintained through a complex mix of algorithms and trader incentives involving its sister token Luna. Earlier in the year, Kwon set up the LFG as an additional safeguard, accumulating a reserve of crypto that could be deployed in times of stress.
Between January and March, the LFG bought $3.5 billion of Bitcoin, according to blockchain forensics firm Elliptic. However, those measures were ultimately unsuccessful in early May, with Kwon and the LFG both saying they had spent nearly all of the reserve in an attempt to stabilize TerraUSD and Luna.

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