Luna: Suspicious transfers above 3000 BTC noticed after Do Kwon's arrest warrant

Luna: Suspicious transfers above 3000 BTC noticed after Do Kwon's arrest warrant

A suspicious transfer worth more than 3,000 USD in BTC ($60 million USD) was discovered after South Korea issued an arrest warrant for Do Kwon, founder and CEO of Terraform Labs.

According to the report, the transfer was made from the LUNA Foundation Guard (LFG) wallet to the KuCoin and OKX wallets.

Wallet is frozen in Korea

The report mentions that the LUNA Foundation Guard virtual asset account was only created on Binance on September 15, when investigations were underway in South Korea against the Terraform CEO.

Transfers worth 3,313 BTC ($66.65 million) were made from the LFG account to two foreign accounts owned by KuCoin and OKX. The coins were transferred several times between September 15 and 18.

The Seoul Southern District Prosecutors' Office and the Joint Securities Crime Investigation Team attempted to freeze those accounts and asked KuCoin and OKX to do the same.

Although KuCoin froze the transferred 1,354 BTC, OKX refused to take any action regarding the remaining 1,959 BTC. South Korean prosecutors are particularly concerned about using the funds to launder money.

It should be noted that these two exchanges are still unregulated in South Korea.

Kwon in more trouble?

The history of the Terra blockchain and its stablecoins TerraUSD (UST) and Luna (LUNA) has been a rather tumultuous one. In 2018, Do Kwon and Daniel Shin founded Terraform Labs in Seoul. The duo launched the Terra blockchain and related cryptocurrencies, UST and LUNA, in 2019.

After the destabilization of LUNA, the entire Terra ecosystem collapsed in May 2022. This led to the collapse of the global crypto ecosystem.

The National Tax Agency of Korea has fined $78.4 million in taxes on Terraform Labs and Kwon. Local authorities soon worked to revoke Kwon's passport. Just yesterday, Interpol issued a Red Notice against him at the request of the Korean government.

In an interview, Kwon admitted that there may be a Terraform member behind the collapse of stablecoin TerraUSD. 

However, Kwon has been active on Twitter, reiterating that he is not on the run and that the company is cooperating with relevant government agencies.

“We are in the process of defending ourselves in multiple jurisdictions; We have held ourselves to an extremely high level of integrity and look forward to unraveling the truth in the coming months,” he tweeted on September 17. This was also around the time the transfer was made presently.


Sep 27, 2022

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