Do Kwon deems news of $40M crypto freeze a ‘falsehood’

News / 06.10.2022

Terra founder Do Kwon has described news of South Korean prosecutors freezing his $39.66 million crypto as a “falsehood.”

On Oct. 5, South Korean local media outlet News1 reported that the country’s prosecutors had frozen 56.2 billion won ($39.66 million) belonging to Kwon and domiciled in two crypto exchanges, KuCoin and OKX.

Kwon, however, has described the report as “spreading falsehood,” adding that he “(does not) even use Kucoin and OkEx, have no time to trade, no funds have been frozen.”

The Terra founder further said:

“It’s no surprise that crypto is most popular in countries that weaponize state institutions against their own people for political gain. Reap what you sow – revolutions start from within.”

Kwon denies freeze of 3,313 BTCs

On Sept. 27, reports emerged that Kwon had made a suspicious transfer of 3,313 BTC to two overseas cryptocurrency exchanges after South Korean authorities issued his arrest warrant.

Then, Kwon denied these allegations. He said:

“(There is) no “cashout” as alleged, I haven’t used KuCoin or Okex in at least the last year, and no funds of TFL (Terraform Labs), LFG (Luna Foundation Guard), or any other entities have been frozen.”

Meanwhile, Terraform Labs has defended Kwon, describing the South Korean prosecutor’s arrest warrant for him as “unfair.”

Terra community pushes LUNC, USTC renaissance

The Terra community has been working on several ideas that could lead to the re-peg of USTC and boost the value of LUNC.

A re-peg proposal submitted by Alex Forshaw, Edward Kim, and Maximilian Bryan would lead to the creation of an Algorithmic Fungible Token, USTN, collateralized by 60% of Bitcoin and LUNC’s market capitalization. The proposal also proposes several improvements to Terra’s Capital Control System (CCS).

However, the proposal is being fiercely debated within the community as some members have kicked against some of the ideas being pushed.

Meanwhile, the Terra community has continued to burn the LUNC token. According to Stakebin data, 6.3 billion LUNC tokens have been burnt over the last seven days. Binance revealed that it burnt 5.6 billion of LUNC on Oct. 3.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.