South Korean Authorities To Freeze Do Kwon’s Property- Is Do Kwon on a Run?

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Luna Basis Guard (LFG), a non-profit group based by Do Kwon, acts as a Bitcoin collateral backstop for the Terra ecosystem. It has refuted claims of transferring crypto tokens to a number of crypto exchanges after a warrant was issued on Do Kwon on September 14.

South Korean prosecutors are taking steps to freeze property related to Do Kwon, who’s suspected of breaking securities legislation within the nation. Two exchanges, together with KuCoin and OKX, have been requested to freeze a complete of three,310 Bitcoins, price near $64 million as per the most recent value.

These cash have been moved from a pockets linked to LFG and are allegedly managed by Do Kwon. This information was confirmed by an official on the Seoul Southern District Prosecutors’ Workplace; nonetheless, they refused to provide any feedback on the identical.

Authorities from South Korea taken care of Kwon’s arrest this month and claimed he was on the run. They acquired assist from Interpol to find Kwon, and a Crimson Discover, which is given when a fugitive is needed for prosecution or to serve a sentence, was issued consequently. Nevertheless, his present whereabouts aren’t recognized, and the Singapore authorities claimed his absence within the nation.

I’m not “on the run” or something related – for any authorities company that has proven curiosity to speak, we’re in full cooperation and we don’t have something to cover
— Do Kwon 🌕 (@stablekwon) September 17, 2022

Kwon took to Twitter to defend his place, saying “I’m making zero effort to cover”. He additionally talked about occurring walks and to the mall, and that nobody from the CT has run into him for the previous couple of weeks. Nevertheless, he didn’t reveal his present location.

KuCoin, OKX and the Authorities

The authorities concerned within the matter refused to touch upon the identification of Kwon’s affiliation with the Bitcoin switch.

In line with CryptoQuant, LFG arrange a digital pockets on September 15 and despatched 3,310 Bitcoins to KuCoin and OKX. “CryptoQuant specified new Bitcoin addresses owned by LFG based mostly on transaction patterns, adjoining flows and materials personal data,” the platform mentioned in an emailed assertion.

Luna Basis Guard, in response to the assertion, mentioned that they haven’t created any new wallets or carried any transfers of any digital currencies since Might this yr, and proceeded to submit a pockets handle on their Twitter for proof.

The LFG treasury’s $BTC pockets is:
bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q
LFG hasn’t created any new wallets or moved $BTC or different tokens held by LFG since Might 2022.@CoinDesk @iamsandali @cryptoquant_com https://t.co/VFN8A4mJRo
— LFG | Luna Basis Guard (@LFG_org) September 27, 2022

CryptoQuant then replied to the tweet, primarily suggesting that LFG has a unique pockets handle not linked to the group. Kwon additionally disapproved of any claims made by the platform. Moreover, he additionally talked about that he hasn’t “cashout’ and hasn’t used each exchanges for no less than the final yr. And that no funds given to his organizations have been frozen.

Additional, KuCoin agreed to cooperate with the prosecutors and froze 1,354 Bitcoins transferred to the change. A spokesperson for OKX confirmed receiving a request from the Korean authorities, saying they’ll be “cooperating with their investigation.”

There was no additional touch upon the LFG tweet by the South Korean Authorities.

The Crash That Expended $3.5 Billion

Do Kwon, together with Daniel Shin, based Terraform labs in 2018 and launched their first cryptocurrency token (then) LUNA in 2019.

The operation of the token relied on its sister token, UST, whereby a certain quantity of LUNA might be burnt to mint UST to keep up its 1:1 peg with the US greenback and vice versa. This mechanism was practical till it wasn’t.

In Might, over $2 billion price of UST was taken off the Anchor Protocol and greater than 100 million of it was liquidated. This sell-off introduced the worth of the UST to $0.91, and merchants exchanged their $0.91 price of UST for $1 price of LUNA. Naturally, the stablecoin acquired depegged and this resulted in rising the provision of Luna and because of this, the worth of the token went right down to fractions of a greenback.

LFG purchased $3.5 billion price of Bitcoin between January and March, which later turned out to be of no good as nearly all the reserve was spent in attempting to stabilize UST and LUNA. The reserve was created for use in instances of stress to maintain the community practical.

The Luna crash was recorded to be one of the important occasions within the crypto area because it led to the downfall of the complete crypto market, which wasn’t performing ideally on the time anyway. And though going simply by Terra’s market cap, the crash resulted in a lack of greater than $40 billion. It’s urged that because the crash pulled the worth of Bitcoin by itself, the precise loss may surpass $300 billion.

Do Kwon later shared a restoration plan for the token, launching Luna 2.0, now generally known as “LUNA”. And a major variety of buyers have been supportive of the plan. And though recently, the coin is way from its earlier all-time excessive, there have been spikes within the value lately. Displaying some restoration of belief within the cryptocurrency by buyers.

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