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Do Kwon Debunks Assets-Freezing Claims, Says Terra Case is “Highly Politicized”

Terra ecosystem collapse which occurred in May 2022 is taking longer than expected to be resolved. Do Kwon, the CEO of TerraForm Labs and founder of the fallen crypto project is reportedly said to be on the run after a South Korean court issued an arrest warrant for Kwon, plus a Red Notice from Interpol.

An earlier report detailed that Korean prosecutors investigating the most significant crypto crash in history requested two popular cryptocurrency exchanges, including Kucoin and OKX, to freeze about $67 million worth of Bitcoin (BTC) that were reportedly linked to Do Kwon and the Singapore-based non-profit Luna Foundation Guard (LFG). 

The Luna Foundation Guard took to Twitter on Wednesday to debunk the claims that its funds were frozen and/or transferred from its treasury for laundering or to facilitate its Kwon’s hiding as widely speculated. The LFG added that the foundation hasn’t created any new wallets since the collapse incident nor transferred any BTC. 

“The LFG treasury’s $BTC wallet is bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q. LFG hasn’t created any new wallets or moved $BTC or other tokens held by LFG since May 2022,” the tweet read. 

In like manner, CEO Do Kwon refuted the statements that assets linked to him, TerraForm Labs, or Luna Foundation Guard (LFG) were frozen by any exchange citing misinformation. He added that he hasn’t traded on either Kucoin or OKX in a long while.

He said, “What has been probably the most surprising in all this is the amount of misinformation that gets spread. There is no “cashout” as alleged, I haven’t used Kucoin or Okex in at least the last year, and no funds of tfl, LFG or any other entities have been frozen.”

Read Also: Terra Founder Do Kwon Would Soon Become an Illegal Migrant in Singapore. Here’s Why

While it is a widespread belief that the Terra founder is dodging arrest from South Korean authorities, he had earlier disclosed that he is making no effort to hide. “I am not “on the run” or anything similar – for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide,” he said


In a recent discovery, Do Kwon has rejected the capital-markets law charges from the Korean authorities claiming that the case has become “highly politicized.” According to Bloomberg, “a spokesperson for the firm said in a statement that prosecutors had demonstrated “unfairness and a failure to uphold basic rights guaranteed under Korean law,” adding that there’s “no reasonable basis” for their accusation of breaches of capital-markets law.

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Ndianabasi Tom
Ndianabasi Tom
Ndianabasi Tom joined the crypto and blockchain industry in late 2018. He is an all-rounded crypto journalist and content writer. At TimesTabloid, he covers the industry's latest news, developments, and other educational content. He is a graduate of Petroleum Engineering.

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