Popular founder and Chief Executive Officer of Terra, Do Kwon, has debunked the cash-out allegation against him. Do Kwon revealed this development via his verified Twitter handle on Wednesday. According to him, reports of his involvement in the alleged transfer of Luna Foundation Guard Ltd funds to OKX and KuCoin exchanges is misleading and untrue.
According to Do Kwon, no “cashout” had occurred on Terra. He further noted that TFL( Terraform Labs), and LFG( Luna Foundation Guard) funds were not frozen as alleged. Do Kwon further revealed he had not used KuCoin and OKX exchange since last year.
Notably, Singapore-based Luna Foundation Guard was mainly entrusted with the responsibility of providing a further layer of support to protect the dollar peg of Terraform’s now-defunct stablecoin.
Meanwhile, South Korean prosecutors had ordered KuCoin exchange and OKX to freeze Bitcoin moved from wallet addresses related to LFG. About 3,313 BTC became transferred from LFG to KuCoin and OKX between September 15 to 18. According to prosecutor Choi Sung-Kook, the exchanges froze 1,354 BTC and 1,959 BTC associated with Do Kwon.
Insights into the ongoing travails of Do Kwon
Worth noting that the suspension of assets related to Terraform and Do Kwon began in May. The suspension manifested to aid the ongoing South Korea’s investigation of Terra LUNA. Recall that in May this year, Terraform’s algorithmic stablecoin TerraUSD Classic (previously TerraUSD) and affiliate cryptocurrency LUNA Classic( previously LUNA) collapsed. The fall led to the loss of about $40million in investors’ funds.
After the collapse, Terraform Labs and Its executives were accused of fraud by South Korean Investors. The accusation reportedly led to the commencement of an investigation by the authorities. More so, Prosecutors from Seoul Sothern District, in charge of the case, issued an arrest warrant on Do Kwon and his executives on September 14. Also, the prosecutor’s office ordered the Ministry of Foreign Affairs to revoke their passports.
According to Prosecutor Choi, the International Criminal Police Organization(Interpol) recently issued a red flag on the embattled Terra Co-founder. The red flag manifested in a bid to globally ask law enforcement agencies to track down and provisionally apprehend Do Kwon. As of now, Interpol in over 195 member counties are still looking for him. However, despite his unknown location, Do Kwon said he is not hiding.
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