Terra-Founder Do Kwon Refutes Reports Of Cashing Out Shortly After Arrest Warrant Issued

Zinger Key Points
  • Do Kwon slams reports of cashing out a day after an arrest warrant was issued.
  • The founder of the Terra blockchain claims he has not used the two crypto exchanges in almost a year.

Amid reports that the Luna Foundation Guard [LFG] moved 3,313 Bitcoin BTC/USD, worth over $69 million, to two crypto exchanges outside South Korea after an arrest warrant was issued for Do Kwon, the beleaguered Terra blockchain founder on Wednesday claimed he had not used the platforms in nearly a year.

Interpol issued a red alert for Kwon's arrest earlier this week, due to his involvement in the collapse of the Terra ecosystem.

Earlier on Sept. 14, South Korean authorities issued an arrest warrant against Kwon, claiming that he refused to cooperate with authorities despite repeated requests.

“What has been probably the most surprising in all this is the amount of misinformation that gets spread. There is no “cashout” as alleged, i havent used kucoin or okex in at least the last year, and no funds of tfl, lfg or any other entities have been frozen,” Kwon stated on Twitter.

CryptoQuant claims funds transferred on Sept. 15

Analytics platform CryptoQuant has claimed that the funds were transferred by the Luna Foundation Guard (LFG) on Sept. 15, the day after a Korean court issued an arrest warrant for Kwon.

Meanwhile, prosecutors have declined to explain why they think the transferred Bitcoin BTC/USD is connected to Kwon.

An organization called LFG was established in Singapore to aid in the expansion of the Terra environment.

Kwon; Nicholas Platias; José Maria Macedo, a partner at Delphi Digital; Remi Tetot, a co-founder of the media site Real Vision; and Kanav Kariya, the president of Jump Crypto are among its members.

LFG also denied establishing any new wallets or transferring any cryptocurrency since May, on Twitter.

Additionally, the organization provided its Bitcoin wallet address.

CryptoQuant responded, by saying "That's the public one," meaning there was at least one additional private wallet.

Kwon says he is not on the run

Kwon has repeatedly claimed that he was not on the run, despite South Korea’s arrest order and Interpol’s notice against him.

Local police announced earlier this month that Kwon was not in Singapore, even though authorities had previously assumed he was there.

Authorities have also attempted to revoke his passport.

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