Luna Foundation Guard Denies Moving Assets Linked to Luna's Do Kwon 12

Luna Foundation Guard Denies Moving Assets Linked to Luna’s Do Kwon

  • Luna Foundation Guard has denied that it has moved any cryptocurrencies linked to Terra or Do Kwon.
  • South Korean prosecutors have asked OKX and KuCoin to freeze over 3,300 BTC linked to Kwon.
  • Meanwhile, the location of Kwon is unknown.

The Luna Foundation Guard has denied all allegations that it had moved bitcoin or other tokens or created new wallets. The statement from the group comes as reports emerge that South Korean authorities had asked the OKX and KuCoin exchanges to freeze $67 million worth of assets linked to Terra co-founder Do Kwon.

The LFG explicitly linked the bitcoin wallet it issued and reiterated that it had not moved any tokens since May 2022. The South Korean prosecutors have asked for the freezing of over 3,300 BTC, which they have said is tied to Kwon.

The prosecutors confirmed that they had indeed asked for the freezing of the funds. The exchanges themselves have not provided a comment on the development.

The reports say that the tokens in question were transferred to the exchanges from a wallet linked to the LFG — which was created on September 15. According to CoinDesk Korea, crypto researcher Cryptoquant said that the new bitcoin address was owned by LFG “based on transaction patterns, adjacent flows and material non-public information.”

The wallet in question saw the BTC transferred between September 15 and 18. The deposits were made four to five times for each of the exchanges, and some of the BTC has been frozen. KuCoin has frozen 1,354 BTC. One of the prosecutors said,

“In a normal criminal investigation, if a large amount of money is moved from the suspect’s account after the issuance of an arrest warrant, it is natural to conduct an intensive investigation with suspicion of laundering and concealment.”

Do Kwon Denies Being on the Run

The Terra investigation has taken the media by storm, and in recent weeks, the intensity has ramped up further. South Korean authorities have convinced Interpol to issue a red notice, as they cannot locate the whereabouts of Kwon.

Kwon has denied that he is on the run, however. He said on Twitter that he was “making zero effort to hide” and that he goes on “walks and [to] malls.” Kwon was last known to be in Singapore.

Amidst this bid to locate Kwon, authorities are launching an intense effort into the operations of Terra. The company is facing several lawsuits, and most recently, it was hit with a lawsuit alleging racketeering.

This does not bode well for Terra, which is sure to face a lot of trouble as the case proceeds. For now, however, authorities will want to bring Kwon to court, which itself is proving to be a challenge.