Shortly after the South Korean authorities requested the search and arrest of Terraform Labs CEO Do Kwon, 3,313 BTC linked to the Luna Foundation Guard (LFG) went into motion.
Funds transferred from LFG wallet on Binance to KuCoin and OKX platforms between September 15 and 18.
The KuCoin exchange froze 1,354 BTC at the request of South Korean authorities. OKX ignored the law enforcement request.
Do Kwon said recently that he made no effort to hide from authorities.
I am not “on the run” or anything similar - for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide— Do Kwon 🌕 (@stablekwon) September 17, 2022
Do Kwon Luna Foundation
The situation around the project drew the attention of South Korean regulators. The South Seoul District Prosecutor’s Office was also interested in TFL’s activities. In June 2022, investors accused Terraform Labs (TFL) and Kwon personally of making false statements regarding the stability of UST.
That same month, the company’s CEO said he did not consider himself a fraudster. He also denied allegations that he withdrew $2.7 billion from the Terra ecosystem before it collapsed. In July, the Seoul South District Attorney’s Office conducted searches at the home of TFL co-founder Daniel Shin and the office of early investor firm Dunamu & Partners.
In September, the Seoul South District Prosecutor’s Office asked the Foreign Ministry to revoke the passports of five people associated with Terraform Labs.