Do Kwon refuted claims that his crypto funds had been frozen after media reports said South Korean prosecutors had escalated actions against the entrepreneur whose blockchain collapsed and wiped investors' $40 billion earlier this year.

Korean media outlet News1 reported on Wednesday that prosecutors had frozen $39.6 million of crypto assets tied to the Terraform Labs founder and chief executive. The report was amplified by CoinDesk, a popular crypto-focused news outlet.

In response, Kwon labelled the news item as "falsehood," once again reiterating that he doesn't use KuCoin and OkEx. "Have no time to trade, no funds have been frozen," he said.

"I don't know whose funds they've frozen, but good for them, hope they use it for good," he added.

Kwon is using his Twitter account, where he has amassed 1 million followers, to share updates about his life. Late last month, Interpol issued a red notice for him, requesting law enforcement agencies worldwide search for and arrest the Terraform Labs founder.

The collapse of Terra cryptocurrency (Luna) and the so-called stablecoin TerraUSD (UST) in May wiped out investors’ $40 billion, prompting an uproar that caused the prosecutors to launch investigations into Kwon and his colleagues. He faces charges in South Korea, the prosecutors said Monday.