According to a South Korean official, “We must first check whether it will be used as an evacuation fund.”
As the Terraform Labs saga continues, authorities have discovered a suspicious Bitcoin (BTC) transfer believed to originate from the cryptocurrency platform's CEO, Do Kwon.
Reports stated that 3313 Bitcoins worth more than $69 million were transferred from Luna Foundation Guard (LFG) to two cryptocurrency exchanges based outside South Korea. This was allegedly done shortly after Kwon's arrest warrant was issued on September 14th.
It was revealed that the LFG abruptly created a wallet on Binance on September 15th. Following that, 3313 BTC was sent to both Kucoin and OKX wallets.
It was also revealed that from September 15, transactions worth 1354 Bitcoin were made to Kucoin via the LFG account on Binance. OKX received 1959 Bitcoin, which is approximately $39 million.
However, as these transactions became public, the South Korean Prosecutors in charge of the case contacted Kucoin and OKX, requesting them to freeze the funds.
While KuCoin froze 1,354 BTC of the transferred assets, OKX ignored the request since the assets may have already been moved to another crypto exchange.
According to a former prosecutor, Kwon may have attempted to use the large sum of money as an evacuation fund.
The official stated:
“In a normal criminal investigation, if a large amount of money is moved from the suspect’s account after the issuance of an arrest warrant, it is natural to conduct an intensive investigation with suspicion of laundering and concealment.”
Another official said,
“We must first check whether it will be used as an evacuation fund.”
Note that Kwon has repeatedly stated that he is not on the run and is in contact with government officials. The prosecution understands that he may deny involvement with the Bitcoin transfer; hence, investigations and funds limitations continue.
