Today in Crypto: Terraform CEO Do Kwon Denies Prosecutors’ Seizure of Crypto Assets

Do Kwon, CEO of Terraform, has denied reports that 56.2 billion won (roughly $39.6 million) of his crypto assets have been frozen by South Korean prosecutors.

“I don’t get the motivation behind spreading this falsehood – muscle flexing? But to what end?” Kwon tweeted Wednesday (Oct. 5). “I don’t know whose funds they’ve frozen, but good for them, hope they use it for good.”

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 https://t.co/gSucKfqsxj

— Do Kwon (@stablekwon) October 5, 2022

His Tweet came in response to a CoinDesk report about the alleged seizures. CoinDesk Korea also reported recently that South Korean authorities had asked crypto exchanges OKX and KuCoin to freeze 3,313 bitcoin worth around $67 million tied to Kwon.

Additionally, in September, there were reports that Interpol had issued a “red notice” for Kwon, meaning an order for law enforcement globally to find and arrest a wanted person.

Kwon has not yet been located.

The failure of the TerraUSD coin rocked the markets earlier in the year, wiping out around $45 million in market value. The fallout has been ongoing for months now, with the South Korean government ordering current and former Terraform staff to stay in the country as of late June.

Read more: South Korea Tells Terraform Staff to Stay in Country, Indicating Investigation Ramp-Up

PYMNTS wrote that this was likely showing the government’s intent to keep on with its probe of the collapse of TerraUSD.

“Departure bans are normally imposed to have them included for questioning,” one unnamed official said at the time. Another report at the time said 15 people were covered under the travel ban, including ex-Terraform developer Daniel Hong.

South Korean news also reported that government officials had moved to revoke the South Korean passport for Kwon, whose whereabouts have been unknown for months now. That would’ve forced him to return to the country to turn in his passport.

The collapse of TerraUSD is also being looked into by the U.S. Securities and Exchange Commission, particularly the marketing behind the digital asset.

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