Many people lost money when stablecoins LUNA and UST fell and traded close to zero, after which Terraform Labs and Kwon were blamed for the incident that swept billions from the market. In no time, the matter became a trending topic and it received a lot of attention in South Korea.

According to a report from the Korean local media outlet News1 on October 5, South Korean prosecutors have frozen 56.2 billion won ($39.66 million) in digital assets, including Bitcoin (BTC), controlled by Do Kwon through two cryptocurrency exchanges.

Kwon reacted to the reports on Twitter by stating that he does not hold his funds on the mentioned cryptocurrency exchanges, that he does not have the time to trade in cryptocurrency, and that the funds that were seized did not belong to him.

Kwon said that all of the reports regarding this matter are untrue. He called the accusations “spreading falsehood” and asserting that he doesn’t “even utilize Kucoin and OkEx, and no funds have been frozen.”

I don’t get the motivation behind spreading this falsehood – muscle flexing? But to what end?

Once again, I don’t even use Kucoin and OkEx, have no time to trade, no funds have been frozen.

I don’t know whose funds they’ve frozen, but good for them, hope they use it for good 🙏

— Do Kwon 🌕 (@stablekwon) October 5, 2022

These assets were added to the 38.8 billion won that Do Kwon is claimed to have attempted to conceal and were frozen on September 27 by the Joint Financial Securities Crime Investigation Team of the Seoul District Prosecutors, led by Director Seong Dan.

Is Kwon Hiding From the Law?

The Supreme Prosecutors Office’s Financial Crimes Unit claimed that Kwon and five other people were all in Singapore at the time a court in the South Korean capital issued an arrest order for them on September 14 due to violations of the nation’s Capital Markets Act.

Do Kwon initially said he was not hiding from the law after the arrest warrant was issued, but he later reiterated this claim on Twitter after prosecutors claimed differently and even urged Interpol to become involved.

A South Korean court issued an arrest warrant for the Terra founder on September 15 after accusing him of violating stock market rules. 

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