South Korean Prosecutors Discover 3,310 Bitcoin Transferred By Terra (LUNA) Founder Soon After Arrest Warrant Issued

3,310 Bitcoin Transferred from Terra’s Luna Foundation Guard (LFG) to Two Exchanges Amid Search for Do Kwon.

Another suspicious transfer has been made from the Luna Foundation Guard.

Since South Korean prosecutors issued an arrest warrant for Do Kwon, the founder, and CEO of TerraForm Labs, a huge amount of Bitcoin (BTC) has been transferred from the Luna Foundation Guard (LFG) to two cryptocurrency exchanges. 

According to Coindesk Korea, shortly after the arrest warrant was issued, 3,310 Bitcoin worth around $67 million at the current exchange rate were transferred to KuCoin and OKX from Binance.

Per blockchain data, the 1,354 BTC were transferred to KuCoin from September 15, 2022, to September 18, 2022. Similarly, 1,959 BTC were transferred to OKX in up to five transactions.

Coindesk Korea Writes:

“The Luna Foundation Guard (LFG) virtual asset wallet that was suddenly created on September 15th on Binance, the world’s largest virtual asset exchange. About 3313 BTC was transferred to Kucoin and OKX wallets.”

Following requests from Koran authorities, KuCoin froze the 1,354 BTC transferred to the exchange from the LFG wallet. However, OKX ignored the Korean authorities’ request to freeze the funds. Notably, OKX may have turned down the authorities’ request because the 1,959 BTC were later moved to another exchange.

Currently, Korean prosecutors are tracking the fund because the sudden transfer could be for money laundering purposes or to aid Kwon’s escape. Do Kwon proclaimed that these Bitcoin were used to defend the UST peg, but the actual story seems different.

Meanwhile, this is not the first time a suspicious transfer has been made since Kwon’s arrest warrant was issued. TheCryptoBasic reported earlier this month that Kwon transferred a whopping $250,000 worth of USDC to a mysterious wallet.