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South Korea requests KuCoin and OKX freeze Do Kwon’s 3,313 Bitcoin

By Darius McQuaid

Edited by Charlie Mellor

14:32, 27 September 2022

Smartphone displays KuCoin name and logo surrounded by cryptos
Crypto exchange KuCoin, along with OKX, have been asked to freeze the BTC transactions – Photo: Getty Images

South Korea authorities have requested crypto exchanges OKX and KuCoin (KCS) to freeze 3,313 bitcoins (BTC) ($67,000) tied to Do Kwon, the co-founder and CEO of Terraform Labs.

Kwon’s company was behind the algorithmic stablecoin terraclassicUSD (USTC) and its sister token terra classic (LUNC), both of which collapsed in value in May 2022.

The Seoul Southern District Prosecutors’ Office revealed that the BTC was sent from a wallet linked to Kwon’s Luna Foundation Guard (LFG) to the two crypto exchanges, a day after a Seoul court issued an arrest warrant for Kwon on 15 September, Bloomberg reported.

BTC to USD

This has since been followed by Interpol issuing a ‘red notice’ for Kwon – a formal request to law enforcement agencies worldwide to “locate and provisionally arrest a person pending extradition, surrender, or similar legal action”.

According to Interpol, “criminals can flee to another country to try to evade justice. A red notice alerts police worldwide about internationally wanted fugitives.” However, the international police organisation stressed a red notice is not an international arrest warrant.

The collapse of Terraform Labs’ cryptos resulted in $40bn (£37bn) of investor’s money being wiped out, which also fed into the current crypto bear market and a hard fork that led to a new version of terra luna (LUNA).

XRP/USD

0.61 Price
+2.020% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

SOL/USD

180.95 Price
-1.260% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

BTC/USD

67,387.45 Price
-0.570% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.14 Price
-2.420% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

LUNA to USD

KuCoin willing to co-operate but OKX remains silent

KuCoin has agreed to co-operate with the South Korean courts, but OKX has yet to make a reply, CoinDesk Korea has reported. However, neither of the crypto exchanges are registered in Korea.

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‘I’m writing code in my living room’

Kwon broke his Twitter silence on 26 September and had a conversation via the platform with other users. When asked where he is, Kwon replied: “I’m writing code in my living room.”

Kwon had not said anything via Twitter since 17 September.  

He added that he is also going on walks and to shopping centres and “making zero effort to hide.”

Terraform Labs did not immediately respond to Capital.com’s request for a comment.

Markets in this article

LUNA2/USD
LUNA2.0 to USD
0.4495 USD
-0.0095 -2.120%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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