KuCoin’s CEO expressed willingness to cooperate with South Korean authorities when it comes to the case of Do Kwon. In particular, 1,354 Bitcoin will be frozen.
Do Kwon's investigation is gaining momentum. Despite the fact that the infamous co-founder of Terraform Labs said that he was not involved in money laundering, cooperating with the investigation and denying the flight from South Korea, the circumstances indicate the opposite. A transfer of a large amount of funds to two global crypto exchanges, KuCoin and OKX, was recorded after the South Korean court issued a warrant for his arrest and Interpol issued a red notice.
3,313 Bitcoins worth over $69 million was transferred from the non-profit organization Luna Foundation Guard (LFG) wallet registered on Binance. 1,354 BTC were transferred to KuCoin within three days. Law enforcement agencies reacted to the situation as follows:
“In a normal criminal investigation if a large amount of money is moved from the suspect’s account after the issuance of an arrest warrant, it is natural to conduct an intensive investigation with suspicion of laundering and concealment. We must first check whether it will be used as an evacuation fund.”
The investigation team contacted both crypto exchanges and asked to freeze those assets. OKX rejected the request, while KuCoin decided to cooperate with the investigation.
KuCoin CEO Johnny Lyu announced his intention to cooperate with law enforcement agencies and regulators of various states. However, he refused to provide more information about the incident with the LFG and Do Kwon:
It is not our position to clarify this issue because as a crypto exchange, we are not in a position to figure out this whole thing, and we are just working to cooperate with the government and regulators as things go on.Johnny Lyu
