LUNA falls sharply as Korean officials freeze Do Kwon's $27 million worth of Bitcoin

The Terra ecosystem collapse, which triggered losses across the board in the crypto market, brought its co-founder Do Kwon within the authorities' crosshair. With the case gradually intensifying, the investigation took a much more serious turn after Interpol issued a red notice in Do Kwon's name. 

Merely days after this development, Do Kwon has reportedly been linked to transferring assets worth almost $67 million.

LFG?! Not really

As per reports, on September 27, about 1,354 BTC, worth a little over $27.2 million, were frozen by the Korean prosecutors following Do Kwon's arrest warrant. 

A new account was created under the guise of Luna Foundation Guard on September 15, just a day after the arrest warrant was issued. Over the following three days, approximately 3,313 BTC, amounting to almost $67 million, were noted to be leaving this account and being transferred to two exchanges. About 1,354 BTC out of the total amount were sent to the crypto exchange KuCoin, which was immediately frozen at the request of the authorities.

The remaining 1,959 BTC could not be frozen due to a lack of cooperation from the OKX exchange, which ignored the prosecutors' request. These Bitcoins are expected to have moved to other platforms from the exchange.

As reported by FXStreet, not too long ago, Do Kwon could be seen defending his innocence on Twitter, claiming he wasn't "on the run". However, according to a former Korean prosecutor, 

"In a normal criminal investigation, if a large amount of money was moved from the suspect's account after the issuance of an arrest warrant, it is natural to conduct an intensive investigation with allegations of laundering and concealment."

LUNA's hits just keep on coming

After marking a good first half this month, LUNA began slipping on the charts and invalidated more than 54% of all gains noted in the first 12 days. Falling from $5.9, LUNA slid to trade at $2.5 at the time of writing, 7.04% below the opening price, registering another red candle after the above-mentioned development.

LUNA 4-hour price chart

For now, the immediate resistance lies at $3.1, a level that has been tested multiple times in the 4-hour timeframe. But the lack of buying pressure observed on the Relative Strength Index (RSI) could act as a hindrance.