Investors have been tuned into the goings-on of the Terra (LUNA-USD) ecosystem for months now. The network, which propagated the crypto collapse in May, has been rife with controversy. This month has culminated with a global search for the network’s founder, Do Kwon. And today’s bit of Terra news sees Kwon trying to distance himself from a controversial news story.
Crypto enthusiasts have had a hard time avoiding anything relating to Terra news. The network has, after all, seen a more rapid and costly decline than any other blockchain project in the world. In mid-May, its token began a rapid plunge which would ultimately shave $60 billion from the project and effectively ruin investor trust. But the project’s fallout has been mired in even more controversy than first thought.
One of the biggest conflicts between investors and developers of the project came in the immediate aftermath of LUNA’s collapse. As the Terra team was kicking around ideas for how to recover, they floated the idea of a hard fork to Terra community members. The community vehemently opposed this idea at first. Though, when the official vote surfaced, there seemed to be a sudden and rapid shift, with 65% of votes advocating for it. As it turns out, Do Kwon had allegedly been hiding LUNA holdings from investors and had used these funds to push his own proposal through with brute force.
These findings, as well as the collapse itself, have pushed authorities to take a deep dive into the project. In July, South Korean authorities conducted over a dozen raids, searching the Terra Labs office and 14 other locations with ties to the project. Through all of this, though, they haven’t been able to find Kwon. And as more evidence piles up, he is speaking out.
Terra News: Do Kwon Speaks Out Against News of Hidden Bitcoin Holdings
Today in the world of Terra news, Do Kwon is becoming very vocal. The founder of the project is speaking out from a place of hiding as outlets report on a bag of Bitcoin (BTC-USD) he allegedly tried cashing out on recently.
Indeed, since the collapse of the network, Kwon’s whereabouts have been largely unknown. In July, the South Korean government green-lighted a notice of arrival if Kwon entered its borders. Since then, Kwon hasn’t appeared publicly, though he is insisting that he is not fleeing authorities. “I’m making zero effort to hide,” he said on Twitter earlier this week. Since then, Interpol has issued a red notice, elevating the search for Kwon significantly.
The South Korean government is also moving to try and freeze $62 million in Bitcoin holdings it accuses Kwon of attempting to cash out on. Analysts suggest the holdings are likely Kwon’s since they come from the Luna Foundation Guard’s wallet. The Luna Foundation Guard is an organization built to underlie Terra. It was started by Kwon just two months prior to Terra’s collapse. The wallet which received the funds then moved them to the OKX and KuCoin exchanges.
Kwon insists that the funds are not his and that the news is just misinformation. “There is no ‘cashout’ as alleged,” Kwon asserts. “I haven’t used KuCoin or OKX in at least the last year.” He goes on to say that no Luna Foundation Guard funds are frozen. Though, the South Korean government says it is only just starting to work on doing so and hasn’t thus far. Investors will need to wait and see whether this move is successful on the part of authorities as this saga continues to unfold.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
