Do Kwon refuted claims that his cryptocurrency funds were frozen after media reports that South Korean prosecutors have escalated their actions against the entrepreneur, whose blockchain collapsed earlier this year, costing investors $40 billion.

Do Kwon refuted claims that his cryptocurrency funds were frozen after media reports that South Korean prosecutors have escalated their actions against the entrepreneur, whose blockchain collapsed earlier this year, costing investors $40 billion.

South Korean media News1 reported on Wednesday that prosecutors have frozen $39.6 million in cryptocurrency assets related to the founder and CEO of Terraform Labs. The report was reprinted by CoinDesk, a popular cryptocurrency-focused news media.

In response, Do Kwon marked the news as "false", reiterating that he does not use KuCoin and OkEx. "There are no transactions, and no funds are frozen," he said. "I don't know whose funds they've frozen, but it's a good thing for them and hope they use it in a good place," he added.

Do Kwon is using his Twitter account to send messages to the outside world, where he has accumulated 1 million followers to share the latest situation about his life. At the end of last month, Interpol issued a red notice to him, and South Korea's legal department believed that Do Kwon had clearly absconded and asked law enforcement agencies around the world to cooperate in searching and arresting the founder of the Terraform laboratory.

In May, the collapse of Terra cryptocurrency (Luna) and the so-called stablecoin TerraUSD (UST) wiped out investors' $40 billion, triggering a stir, with prosecutors launching an investigation into Kwon and his colleagues, and law enforcement agencies said on Monday that he would face charges in South Korea.