The founder of the now-defunct old Terra chain is said to have lost $67 million worth of Bitcoin that was linked to him to South Korean authorities late last month.
Do Kwon, the CEO of Terraform Labs, the firm behind the failed algorithmic stablecoin project, has had his cryptocurrency assets frozen by South Korean prosecutors, according to Korean news outlet News1. The assets total 56.2 billion won ($39.6 million) in value.
Do Kwon responds to the news on Twitter and expresses his concern about why misleading information is being circulated. Additionally, he stated categorically that he does not use any of the exchanges, specifically KuCoin and Okex, where these funds were purportedly seized.
Authorities in South Korea asked the cryptocurrency exchanges OKX and KuCoin to freeze 3,313 bitcoin (BTC), worth almost $67 million, that were connected to Do Kwon at the end of last month.
The move comes in response to Interpol’s recent Red Notice for Do Kwon, which asks law enforcement agencies around the world to track down and temporarily detain a suspect pending extradition, surrender, or other legal action. Kwon said he wasn’t “on the run,” but he wouldn’t say where he was.
He added that the Terrafoam labs team has held itself to a very high standard of integrity, is currently defending itself in several jurisdictions, and looks forward to establishing the truth over the coming months.