Do Kwon Refutes 3,313 BTC Transfer Allegations, Terra Whistleblower Backs Founder

Do Kwon Refutes 3313 BTC Transfer Allegations Terra Whistleblower Backs

The Luna Foundation Guard (LFG) denied moving bitcoins after a trail of coin movement prompted South Korean authorities to take steps to freeze assets.

Kwon also denied these claims by moving Bitcoin from LFG wallets to KuCoin and OKX. While the founder addressed “misinformation” to him, added that he has not used the two crypto exchanges for over a year and confirmed that the funds of LFG, TFL and other entities have not been frozen.

But amid the chaos, Terra’s whistleblower and investigator, FatMan, said he trusts Kwon.

Leaning to believe do Kwon

In the last tweetFatMan said he would lean in to believe the controversial Terra boss about this, arguing:

“To be honest, although I haven’t seen the ‘non-public’ transaction receipt myself, for once I’d be inclined to believe Do Kwon in this one. Chain analysis is not foolproof, so these flows cannot be tracked with 100% certainty (unless there are some secret Binance subpoenas).”

FatMan had previously said he didn’t know who to believe and encouraged Kwon to publish a full statement and transaction proof of the BTC staked for UST.

The comment comes after South Korean prosecutors asked the two exchanges to freeze $67 million in Bitcoin pegged to Kwon after tracking money transfers from LFG wallets. According to the report, analytic platform CryptoQuant identified a new wallet address believed to belong to the LFG created on September 15, from which 3,310 Bitcoins were moved to KuCoin and OKX.

Soon LFG issued a statement denying the transfer, adding that no money has moved since Terra’s collapse in May. In addition, no new wallets have been created to transfer the money.

The Treasury wallet shared as evidence by the LFG shows the execution of its last trade on May 18 this year. The wallet had received nearly 71,000 BTC and spent 70,736 BTC, and had 313 BTC at the time of writing.

Red notification

Kwon previously received a red message from Interpol asking for help from global law enforcement to find and arrest the founder. While his whereabouts remain unknown, Kwon insisted he is not on the run and added that he often goes for walks and shopping malls. The 31-year-old developer assured that he has continuously worked with regulators to clear his name.

He has been accused of violating capital market rules in South Korea and faces legal challenges in several jurisdictions.

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