Wednesday, November 30, 2022
HomeCrypto NewsMarketTerra Founder Debunks Fresh Reports of $39.6M Frozen Funds

Terra Founder Debunks Fresh Reports of $39.6M Frozen Funds

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The founder of Terraform Labs, Do Kwon has once again denied recent reports of $39.6M in frozen crypto.

Following the issuance of his arrest warrant by South Korea, Terra’s Do Kwon has been on the news more often than usual. Several developments have followed the arrest warrant, with speculations of his arrest evasion gaining steam. 

Notwithstanding, Kwon has been in the habit of denying all the reports and speculations surrounding him. Recent claims suggest South Korean authorities have further frozen about $39.6M in cryptocurrencies belonging to Terraform Labs. He has, however, come to deny this claim.

Kwon took to Twitter, where he appears to have been rather active, to debunk the claims of frozen funds. 

“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,” he said in a tweet Wednesday, as a reply to the recent reports. 

Kwon further noted that if South Korean authorities have frozen someone’s funds, they are oblivious of whose funds they are.  “I don’t know whose funds they’ve frozen, but good for them, hope they use it for good,” he added.


Reports from a South Korean local news outlet suggest that South Korea froze additional crypto worth 56.2 billion won ($39.6M) belonging to Do Kwon. This development comes a week after The Crypto Basic reported that authorities from South Korea discovered about 3,310 BTC ($67M) moved by Kwon following reports of his arrest warrant.

Data indicates that the funds were moved to KuCoin and OKX between September 15 and 28. Upon request from the authorities, KuCoin froze the funds in its possession, about 1,354 BTC. Nonetheless, Kwon and the Luna Foundation Guard denied the reports.

Subsequently, Terra informant FatMan – renowned for his criticism of Kwon and Terra – revealed that he believed Kwon did not make the transaction. “For once, I would lean towards believing Do Kwon on this one,” he said. As similar claims surface, Kwon has also come up to debunk them, alleging that they are all false.

Meanwhile, Terra informant FatMan disclosed some interesting information regarding Terraform Labs in a recent tweet Wednesday. According to him, Terraform Labs controls a substantial amount of wealth stored in several company accounts despite Kwon’s claims that he and the company lost almost everything following the crash.

‘A verified source has confirmed that Terraform Labs is “extremely cash-rich” with “hundreds of millions in registered company accounts,” despite the total collapse of the Terra project back in May,’ FatMan said.

Kwon’s whereabouts remain unknown, although rumors suggest the 31-year-old software developer might have been smuggled to North Korea from Singapore, as recently reported by The Crypto Basic. Despite his claim of willingness to cooperate with the authorities, South Korea has revealed that he is on the run, with Interpol issuing a red notice on his behalf.

Amidst these speculations, Terraform Labs has come up to defend Kwon, asserting that he has broken no definite Korean laws as Terra is not classified as a security by the financial authorities.

Recall the Do Kwon worldwide search is in progress after Interpol issued Red Notice for Terra Founder.

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Albert Brown
Albert Brown
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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