South Korean court freezes $40 million belonging to Do Kwon

The legal troubles targeting Do Kwon, the founder of Luna are just beginning… On the agenda of this week’s soap opera: the South Korean authorities have frozen nearly $40 million in cryptocurrency allegedly belonging to the founder of Luna.

40 million frozen on Kucoin and Okx

South Korean justice has frozen nearly $40 million in cryptocurrency that allegedly belongs to Do Kwon, the founder of Luna. According to the local media News1, the freeze was achieved thanks to the cooperation of Kucoin and Okx, two cryptocurrency exchanges where Do Kwon would have tried to hide his funds.

Indeed, following the issuance of an arrest warrant against Do Kwon by the Korean judiciary in mid-September, the Luna Foundation Guard (LFG) set up by Do Kwon to contain the collapse of Luna and its stablecoin UST had created a wallet on Binance containing about 3313 bitcoins. These funds were then transferred to the Kucoin and Okx exchanges.

Do Kwon reacted to this freezing of funds on Twitter. The founder of Luna denied being the owner of the frozen funds. He even fears that the frozen funds will be used to silence some people…

Again, I don’t even use Kucoin and Okx, I don’t have time to trade, no funds have been frozen. I don’t know who owns the funds they froze, but good for them, I hope they use it for good.

Do Kwon

Created by Do Kwon, the cryptocurrency Luna and the stablecoin UST went downhill last May. Luna whose ATH was $119 in April 2022 has abruptly dropped to $0.01. The Stablecoin UST, which is normally worth $1USD, dropped to $0.08. In just a few days, more than $30 billion in capitalization went up in smoke.

After this painful episode, Do Kwon got into serious legal trouble. On September 14, 2022, an arrest warrant was issued against him for fraud by the South Korean justice. In addition, Interpol issued a red notice against him. This simply means that no matter in which country he ends up, Do Kwon will have to be arrested and then extradited to his country to be tried.

For his part, Do Kwon denies being on the run. He even said that he is at the disposal of any public authority that wants to contact him. “I am not on the run or anything like that. For any government agency that has expressed interest in communicating, we are in full cooperation and have nothing to hide.” he wrote on Twitter.

For now Do Kwon is living in hiding to escape his country’s justice system and Interpol. It remains to be seen if Luna and Do Kwon will survive… While waiting for more information, we invite you to read our latest guide. Have a nice weekend.