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šŸ’„Terra LUNA Do Kwon Lashes out at Fake Reports About Frozen FundsšŸ’„
October 05, 2022
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  • South Korean officials reportedly freeze funds from two exchanges allegedly used by the Luna Foundation Guard.
  • Terraform Labs CEO Do Kwon has called the reports fake news.
  • South Korean prosecutors issued an arrest warrant for Kwon and five others with links to Terraform Labs.

Korean prosecutors have reportedly frozen $40 million of funds Kwon had attempted to conceal on crypto exchangesKuCoinand OKX.

The seizure reportedlyoccurredwith the help of the two crypto exchanges, with whom Kwon claims he had no business dealings.

Kwon decries claims of frozen assets

Kwon lashed out at what he calls ā€œfalsehood,ā€ questioning the motive behind the reporting. He also added that he has no time to trade:

According to Korean prosecutors, the frozen funds belong to theLunaFoundation Guard, a pool of BTC and other funds used by Kwon and Terraform Labs to defend the peg of the TerraUSDstablecoin.

When a South Korean court issued an arrest warrant for Kwon on Sep. 14, 2022, the Luna Foundation moved 3,313 BTC to aBinancewallet. After that, approximately $27 million was transferred to KuCoin, while an additional $40 million was moved to OKX. According to reports, both exchanges froze funds at the request of South Korean prosecutors.

Prosecutors are baying for Kwon’s blood, suspecting the Terraform Labs co-founder of being involved in fraud after receiving complaints from 81 investors that lost big when Terraform Labs’ stablecoin USTlost its pegin May 2022. Users ofCurveFinance withdrew TerraUSD liquidity, causing the price of TerraUSD to spike, which in turn led to a drop in the price of LUNA, a sister coin designed to help UST keep its dollar peg. Once LUNA collapsed to almost zero, TerraUSD soon followed.

The de-pegging event sent shockwaves rippling through the crypto markets, the effects of which are still being felt today. Crypto lender Celsius declared bankruptcy in July 2022, while Three Arrows Capital, an embattled Singaporean hedge fund with $200 million exposure to LUNA, is currently undergoing liquidation.

Twitter responds to Kwon’s denial

Following the freezing of assets, crypto researcher FatManTerra advised Kwon to do a little introspection:

FatManTerra refers to aninvestigationby the U.S. Securities and Exchange Commission into Terraform Labs’ marketing of the TerraUSD stablecoin.

To protect funds from future seizure, FatManTerra advocates the use of self-custodial crypto wallets.

Another Twitter user, EATOSHINAKAMOTO, responsible for developing the first LGBTQ+ token, defended Kwon,

On Sep. 19, 2022, the Korean Prosecutor’s office asked Interpol to intervene in the Terraform Labs saga, citing Kwon’s lack of cooperation with their investigation into the company and its practices. Ared notice isissuedto grant law enforcement the power to provisionally arrest a suspected criminal in preparation for extradition or legal action. The prosecutors also revoked Kwon’s passport.

A week earlier, Korean authorities had issued anarrest warrantfor Kwon and five other individuals with links to Terraform Labs for falling afoul of the country’s capital markets law.

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, ā€œThe Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.ā€

The data includes Real GDP and the PCE Price Index,Ā which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data šŸ‘‰will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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If you find value in my content, consider showing your support via:

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1) Simply scan the QR code below šŸ“²
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