Bitcoin Reserve Linked To Fugitive Do Kwon Opposes Moving Tokens
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Do Kwon's Bitcoin Reserve
The post was published after prosecutors on Tuesday tried to freeze assets connected to Kwon, an individual wanted in South Korea on suspicion of violating securities laws following the collapse of his Terraform Labs crypto ecosystem, which lost US$60 billion (RM277.08 billion). According to sources, the prosecution requested to freeze the 3,313 Bitcoins (currently worth US$67 million at current exchange rates) after transferring from a wallet connected to Kwon's LFG to the crypto exchanges KuCoin and OKX. A response from KuCoin and OKX was not immediately available. Prosecutors have chosen not to respond to the LFG tweet.
Interpol has been asked to assist South Korea in finding Kwon, whose Terra stablecoin project failed in May. After Singapore claimed earlier this month that he was no longer there, his whereabouts are unknown. On September 14, South Korean prosecutors said that a court had issued an arrest warrant for Kwon.
TerraUSD Stablecoin's Peg
The primary mechanism to keep the TerraUSD stablecoin's peg to the US dollar was a complicated combination of algorithms and trader incentives involving its sister, Luna. Kwon established the LFG earlier this year as an additional measure of protection, building up a supply of cryptocurrency that might be used in emergencies.
Elliptic, a blockchain forensics company, claims that between January and March, the LFG purchased US$3.5 billion of Bitcoin. Early in May, Kwon and the LFG claimed they had used almost all of the reserve to stabilize TerraUSD and Luna, but those efforts eventually proved fruitless.