Do Kwon deems news of $40M crypto freeze a ‘falsehood’ News ▸ South Korea ▸ Terra ▸ People
Do Kwon deems news of $40M crypto freeze a ‘falsehood’
The Terra community is working on several ideas that could lead to the re-peg of USTC and boost the value of LUNC.
2 min read
Updated: Oct. 5, 2022 at 4:58 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Terra founder Do Kwon has described news of South Korean prosecutors freezing his $39.66 million crypto as a “falsehood.”
I don't get the motivation behind spreading this falsehood – muscle flexing? But to what end?
Once again, I don't even use Kucoin and OkEx, have no time to trade, no funds have been frozen.
I don't know whose funds they've frozen, but good for them, hope they use it for good 🙏 https://t.co/gSucKfqsxj
— Do Kwon 🌕 (@stablekwon) October 5, 2022
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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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Bitcoin
$98,214.56
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.