On suspicion of violating securities laws, Interpol has issued a Red Notice to Terraform Labs co-founder Do Kwon, whose Terra stablecoin ecosystem collapsed in May, wiping out an estimated $60 billion. According to a recent report from CoinDesk Korea, South Korean prosecutors are attempting to freeze Do Kwon’s assets.

Korean prosecutors claim that Do Kwon attempted to cash out over 3,313 BTC via KuCoin and OKX shortly after a warrant for his arrest was issued. According to CoinDesk, these assets (Bitcoin) from CEO Kwon were suddenly transferred to two overseas virtual asset exchanges.

South Korean prosecutors were able to freeze some of the transferred Bitcoin for the first time in four months. Prosecutors asked KuCoin and OKX to freeze the total of 3,313 Bitcoins, worth approximately $67 million at current prices, that had been transferred to the exchanges from a wallet associated with Kwon’s Luna Foundation Guard.

According to Crypto Quant, from September 15 to 18, 3313 BTC in the LFG Binance wallet were transferred to Kucoin and 1959 BTC to OKX. Deposits were made four to five times in each exchange. On September 14, South Korean prosecutors announced that a court had issued an arrest warrant for Kwon. 

Whilst Kucoin decided to accommodate the request, OKX allegedly ignored it. As a result, 1959 BTC transferred to OKX may have moved to another exchange.

Concerning the matter, a former prosecutor commented:

In a traditional prison investigation, if a big sum of money is moved from the suspect’s account after the issuance of an arrest warrant, it’s pure to conduct an intensive investigation with suspicion of laundering and concealment. We should first examine whether or not it is going to be used as an evacuation fund.

The meltdown of terraUSD and luna coins affected hundreds of thousands of investors and the crypto ecosystem as a whole. Kwon is being sued in class action lawsuits in both South Korea and the United States for allegedly defrauding investors.