Summary:
– Terraform Labs, contrary to previous claims, might be holding over $159 million in cryptocurrencies, including Bitcoin and Ethereum, according to Arkham Intelligence.
– Terraform Labs’ co-founder, Do Kwon, is alleged to have transferred 10,000 Bitcoin from Terraform and the Luna Foundation Guard into a Swiss bank account during the collapse of LUNA and UST.
– Kwon is facing extradition and multiple charges in the United States and South Korea, following the implosion of the Terra ecosystem, which may result in over four decades of imprisonment.
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Introduction
Terraform Labs may hold more than $159 million worth of cryptocurrencies, according to a recent investigation by Arkham Intelligence. This contradicts the company’s previous claims of nearly losing all of its assets.
Discovery by Arkham Intelligence
Arkham Intelligence, incentivized by a bounty, conducted an on-chain sleuthing operation. The operation was led by ErgoBTC and another anonymous researcher, who discovered that Terraform Labs and its disgraced co-founder, Do Kwon, hold assets including 5,292 Bitcoin (worth $153.10 million) and roughly $4.61 million worth of Ethereum, among other cryptocurrencies.
Luna Foundation Guard’s Claims
This discovery contradicts the Luna Foundation Guard’s (LFG) announcement last year, stating that it had depleted its cryptocurrency holdings in May 2022. The move was reportedly taken to tackle the collapse of the ecosystem’s stablecoin, TerraUSD (UST). LFG claimed to retain only a fraction of its original holdings.
SEC’s Allegations and Swiss Intervention
The U.S. Securities and Exchange Commission (SEC) alleged that Do Kwon transferred 10,000 Bitcoin from Terraform Labs and LFG into a Swiss bank account. This occurred during the market crash of LUNA and UST. Swiss authorities froze $26 million worth of these assets, following requests from the New York Attorney’s Office and the SEC.
Legal Troubles for Do Kwon
Do Kwon was sentenced to four months in prison in Montenegro for using a forged Costa Rican passport. However, this could be just the beginning of his troubles. Both the United States and South Korea are seeking his extradition, following the $40 billion crash of the Terra ecosystem. If convicted, Kwon could face more than four decades in prison.
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