South Korean authorities demanded that the crypto exchange OKX and Kucoin freeze 3,313 bitcoins (
BTC

) is reportedly linked to Do Kwon, co-founder of blockchain developer Terra Terraform Labs.

Kwon, who is currently on the run from Korean authorities in a securities violation case, reportedly created a new wallet on September 15, just one day after a Korean court issued an arrest warrant for the fugitive cryptocurrency entrepreneur.

According to cryptoanalytical group Cryptoquant, a new BTC wallet called Luna Foundation Guard (LFG) was created and subsequently a total of 3,313 BTC was transferred to KuCoin and OKX.

KuCoin received a total of 1,354 BTC, which was frozen immediately after the transfer, with OKX allegedly ignoring the authorities’ requests. Thus, a total of 1,959 BTC could not be frozen and could be moved to other platforms.

Cointelegraph has contacted both crypto exchanges for confirmation, but has not received a response as of press time.

The move of BTC out of the LFG wallet has raised eyebrows among many as it contradicts Kwon’s early claims that he used all the BTC in LFG’s reserves to protect the TerraUSD (UST) pin – after being renamed TerraUSD Classic (USTC).

Related: Terra Co-Founder Do Kwon Says He’s ‘Making No Attempts to Hide’ After Interpol Notice

Prior to the issuance of a warrant for his arrest on September 14, Kwon claimed that he was not under investigation or contacted by any authorities, despite numerous reports of multiple investigations in South Korea. However, soon after the warrant was issued, Kwon fled Singapore, forcing the authorities to turn to Interpol for help.

On September 26, Interpol issued a “red notice” against Kwon, confirming his status as a fugitive. Despite all the evidence and the international notice against him, Kwon continues to tweet from time to time claiming otherwise.

The collapse of the $40 billion Terra ecosystem resulted in a crypto market crash that wiped out nearly a trillion dollars from the crypto market. Even after such chaos, Kwon continued to enlist the support of some sections of society, proclaiming his innocence and claiming that he had lost everything in the collapse.

Source: CoinTelegraph

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