Air for Terra Founders is getting thinner

The ice seems to be getting thinner for Do Kwon: According to media reports South Korean authorities have frozen another $40 million in cryptocurrencies said to be linked to the fugitive Terra founder. Curious: According to Do Kwon, the funds did not belong to him.

$40 million frozen – but by whom?

Accordingly, the prosecutor’s office in Seoul is said to have confiscated 56.2 billion South Korean won – the equivalent of almost 40 million US dollars – in cryptocurrencies. The funds are said to come from the Luna Foundation Guard. Last week, $67 million in Bitcoin was frozen, which Do Kwon is said to have postponed after an arrest warrant was issued against him.

According to Do Kwon, however, the funds did not belong to him. “I don’t know whose funds they have frozen, but good for them, I hope they use it for good,” comments the Terra boss on twitter. The funds were confiscated on Kucoin and OkEx – crypto exchanges, through which Do Kwon claims not to have traded.

Interpol in the neck

The whereabouts of Do Kwon continue to be a mystery. Since September, Do Kwon and five other employees have been wanted on an arrest warrant – since then there has been no trace of the Terra founder.

Interpol is also said to have started the pursuit – which Do Kwon doubted on Twitter. According to Do Kwon, he was unable to find a wanted notice in the form of a Red Notice. The fact that he is accused of violating the Capital Markets Act is one of the few clear indications in this opaque game of hide-and-seek.

Do Kwon soon disappeared without a passport?

The South Korean Foreign Ministry has now given Do Kwon an ultimatum: Do Kwon’s passport is to be declared invalid after a four-week period if it is not returned by then. Upon prior registered mail, Do Kwon, according to the official announcementnot reacted.

If Do Kwon loses his passport, he can no longer leave South Korea – as long as he is still there. In the meantime, he was suspected in Singapore. Wherever he is actually staying: leaving the country would not be possible without a passport.

Terra employee arrested

One of the suspects has meanwhile been arrested by South Korean law enforcement agencies, according to South Korean media to report. He is said to have belonged to the inner Terra Circle and manipulated the LUNA course using bots.

A bang in the crypto market

The unprecedented collapse of the Terra ecosystem wiped out $60 billion in a matter of days — the entire market cap of the LUNA token and its algorithmic stablecoin, TerraUSD. The close interlocking of both cryptocurrencies triggered a causal chain dubbed the “death spiral” that saw thousands of investors lose their money. We have worked up the entire story in the June issue of BTC-ECHO Magazine.