Interpol has issued a Red Notice for the arrest of Terraform Labs CEO & Founder, Do Kwon. Do Kwon was pushed into the crypto spotlight after the collapse of its token, Terra (LUNA) and stablecoin TerraUSD (UST) in May 2022.
This event alone wiped off almost $45B of market capitalization over the course of a week. Earlier this year it made headlines as the biggest crash in crypto history.
New wallet address generated after arrest warrant issued for Do Kwon
Apparently on September 15, a day after authorities issued a warrant for Kwon’s arrest, a new wallet address was generated.
The new wallet is believed to belong to Do Kwon’s Luna Foundation Guard (LFG). A total of 3,310 Bitcoin (BTC) have been moved from this wallet to crypto exchanges OKX and Kucoin.
Following the move, South Korean authorities have requested OKX and Kucoin to freeze the moved BTC suspected to be tied to Kwon.
KuCoin reportedly received a total of 1,354 BTC which were frozen promptly after the transfer.
However, OKX has ignored Korean authorities’ request to freeze. So, the remaining 1,959 BTC have not been frozen and could have since been moved to other platforms.
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A little background into the s**tshow that was the crash
TerraUSD is an algorithmic stablecoin which was maintaining its peg to the US dollar and was backed by Luna to maintain its stability such that it remains at $1.
Earlier this year, Kwon set up Luna Foundation Guard (LFG) as an additional safeguard. It was intended to be used as a crypto reserve that could be brought into action in times of stress.
Elliptic reported that between January 2022 and March 2022, LFG bought $3.5B worth of Bitcoin. These measures ultimately proved futile in the May 2022 crash, where Kwon and LFG both stated they had spent nearly all of their reserves in order to try and stabilize TerraUSD and Luna.
Do Kwon says he isn’t hiding
Do Kwon is reportedly on the run from law enforcement, even though he has stated on Twitter that he is “making zero effort to hide. I go on walks and malls, no way none of CT hasn’t run into me the past couple weeks”.
He has not disclosed his current location.