Do Kwon Denies His Crypto Assets Worth $39.6M Were Frozen, Calls The Current Scenario 'Muscle Flexing'

Do Kwon, the beleaguered CEO and co-founder of Terraform Labs, the team that created the infamous Terra blockchain, is back on Twitter to defend himself and to belie allegations that $39.6 million worth of crypto assets belonging to him were frozen by South Korean authorities.

Kwon's name has become a staple in the cryptocurrency industry especially when the algorithmic stablecoin TerraUSD (UST) depegged and crashed in May. The implosion impacted cryptocurrency and painted a negative to the emerging industry.

The spectacular collapse triggered authorities all over the world to review their respective policies on digital currencies, but it spelled trouble for South Korean authorities since Kwon is based in the region and has a couple of TFL headquarters in South Korea.

South Korean authorities sprung into action and a few months after the crash secured an arrest warrant for Kwon and five other TFL employees. Recently, prosecutors in the country claimed they have frozen $39.6M of crypto assets owned by TFL CEO Kwon.

However, Kwon used Twitter to defend himself and to deny claims made by South Korean authorities. "I don't get the motivation behind spreading this falsehood - muscle flexing? But to what end? Once again, I don't even use Kucoin and OKEx, have no time to trade, no funds have been frozen. I don't know whose funds they've frozen, but good for them, hope they use it for good," he said.

The crypto executive further noted that if the prosecutors have frozen someone else's funds, they should use them for the good. "I don't know whose funds they've frozen, but good for them, hope they use it for good," he tweeted.

Sounding a little political, Kwon said in a follow-up tweet, "Hope they don't use it on attempting to prosecute the opposition candidate for the presidential election or to put half the country's living former presidents in jail."

"It's no surprise that crypto is most popular in countries that weaponize state institutions against their people for political gain. Reap what you sow - revolutions start from within," he added.

According to South Korean authorities, Kwon's name has been included in Interpol's red notice list, which means any law enforcement around the world affiliated with the international criminal police organization can locate and temporarily hold the crypto executive.