The South Korean authorities are intensifying the manhunt for the crypto recluse Do Kwon. The South Korean government issued a warning letter to the troubled entrepreneur, posing an ultimatum. According to the document, Do Kwon has to turn over his passport in 14 days or it will become invalid. As the whereabouts of Do Kwon are still unknown, this would mean Do Kwon wouldn’t be able to cross borders, adding some obstacles to his getaway plan.
Do Kwon asked to return his passport within 14 days; otherwise, risk it getting canceled.
— Crypto India 🔑 (@CryptooIndia) October 6, 2022
Korean prosecutors froze around $39.6 million worth of crypto assets yesterday, to which Do-Kwon responded by tweeting that frozen funds do not belong to him 💰 pic.twitter.com/gRzNCBvuOc
The First Arrest in Relation to Terra (LUNA) Fiasco
The South Korean authorities made a breakthrough in the Terra (LUNA) case with the first arrest. Yoo Moo, one of the five other TerraForm Labs insiders charged with insider trading, tax evasion, and breaking Capital Markets Law, has been detained by the South Korean police today.
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What’s more, Interpol issued a Red Notice for Do Kwon over a week ago. The leader of the fallen crypto corporation insists that he hasn’t even noticed the Red Notice, even though police are after Kwon in 196 countries. To boot, the Luna Foundation Guard (LFG) stated that South Korea’s efforts to force Do Kwon to take responsibility for the Terra (LUNA) beatdown are “highly politicized.
Another $40 Million in Question
On top of that, the Seoul Southern District Prosecutors’ Joint Financial Securities Crime Investigation Team reported that $40 million in crypto assets including Bitcoin (BTC) have been frozen. Do Kwon claims that these funds are not his and that the move by authorities is simply “flexing.”
Another $64 million in crypto assets was frozen a week ago. Then, the South Korean government ordered popular crypto platforms OKX and KuCoin to freeze 3,313 bitcoins (BTC). In response, Do Kwon asserted he doesn’t even use KuCoin and OKX and has no time for trading. Supposedly, Do Kwon is calmly “coding in his living room,” wherever that is.
KuCoin and OKX have frozen $67m in Bitcoin at the request of Korean prosecutors who claim it belongs to Luna Foundation Guard.
— FatMan (@FatManTerra) October 5, 2022
Do Kwon confirmed that the bitcoins do not belong to him.
My main takeaway: self-custody your crypto wherever possible.https://t.co/p9VqEPkBEk
On the Flipside
- Many crypto enthusiasts are in shock at how Do Kwon is still active on Twitter even amid the global manhunt.
- In contrast, Tornado Cash founder Alexey Pertsev was arrested in a matter of days.
Why You Should Care
The $60 billion crypto crash in May has smashed to pieces previously successful crypto hedge funds. The algorithmic stablecoin Terra (UST) lost its peg and crashed into fractions of cents instead of a 1:1 ratio with the United States Dollar. Ultimately, the fiasco is linked to around $2 trillion sent down the tubes.
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