Kwon, who is currently on the run from Korean authorities in a securities violation case, reportedly created a new wallet on Sept. 15, just a day after a Korean court issued an arrest warrant against the fugitive crypto founder.
According to the crypto analytics group Cryptoquant, a new BTC wallet was created under the name of Luna Foundation Guard (LFG), and a total of 3,313 BTC was then transferred to KuCoin and OKX.
KuCoin received a total of 1,354 BTC, which was frozen immediately after the transfer, while OKX has reportedly ignored authorities’ requests. Thus, a total of 1,959 BTC couldn’t be frozen and could have been moved to other platforms.
Cointelegraph reached out to both crypto exchanges for confirmation but didn’t get a response as of publication time.
The movement of BTC from the LFG wallet raised many eyebrows, as it contradicts Kwon‘s early claims of having used all the BTC in the LFG’s reserves to defend the peg of TerraUSD (UST) — since renamed TerraUSD Classic (USTC).
Prior to the issuance of his arrest warrant on Sept. 14, Kwon claimed that he was neither under investigation nor had he been contacted by any authorities, despite numerous reports of several investigations in South Korea. However, right after the arrest warrant was released, Kwon reportedly fled Singapore, forcing authorities to seek help from Interpol.
On Sept. 26, Interpol issued a Red Notice against Kwon, confirming his fugitive status. However, despite all the evidence and an international notice against him, Kwon continues to tweet every now and then, claiming otherwise.
The $40 billion Terra ecosystem collapse led to a crypto market rout that wiped out nearly a trillion dollars from the crypto market. Even after such mayhem, Kwon continued to garner support from some sections of the community as he claimed his innocence and maintained he lost everything in the collapse.