According to the Korean news outlet News1, South Korean prosecutors have frozen 56.2 billion won ($39.6 million) worth of cryptocurrencies belonging to Do Kwon, CEO of Terraform Labs, the company behind the failed Luna stablecoin project.

Do Kwon denies it all

Prosecutors in South Korea alleged that a TFL wallet transferred 3,313 Bitcoins between the KuCoin and OKX exchanges. After receiving an arrest warrant, Kwon reportedly made a new wallet for the Luna Foundation Guard, the charity responsible for Terra.

To counter this claim, Luna Foundation Guard asserted that no new wallets had been created or BTC or other tokens held by LFG had been transferred since May 2022.

Even in this case, Kwon labeled the news report as a “falsehood,” emphasizing that he does not use KuCoin or OKEx. “Have no time to trade; no funds have been frozen,” he explained.

“I don’t know whose funds they’ve frozen, but good for them, hope they use it for good,” he added.

Interpol, an agency that organizes worldwide searches for criminals, issued a “red notice” for Kwon late last month. The purpose of a red notice is to notify law enforcement agencies throughout the world to begin searching for and apprehending a specific wanted individual. However, Kwon has not yet been found.

Luna takes a hit

In the absence of any bullish triggers, the price of LUNC and LUNA is now in the red. As Do Kwon’s legal issues go on, the new Terra blockchain and its LUNA token struggle to attract investors to its ecosystem.

LUNA was selling at $2.40 at the time of this writing, down 2.42% in the past 24 hours.

Binance’s “burn” of LUNC, the former Terra chain’s native coin, had a far less effect than was anticipated.