Did Terra Founder Do Kwon and LFG Invest in 5,292 Bitcoins? Here’s The Truth

The post Did Terra Founder Do Kwon and LFG Invest in 5,292 Bitcoins? Here’s The Truth appeared first on Coinpedia Fintech News

In a recent development, it has been reported that Do Kwon, co-founder of Terra and his associates, has withdrawn a significant amount of Bitcoin linked to the Luna Foundation Guard (LFG). A total of 5,292 Bitcoins, valued at approximately $163 million, were moved from a Binance wallet belonging to the Luna Foundation to an unknown wallet on Monday.

The Motive Behind Wallet Transfers? 

This comes amidst ongoing court proceedings and investigations involving Terraform Labs (TFL) and Do Kwon. The US Securities and Exchange Commission (SEC) disclosed that Do Kwon and TFL had secretly transferred 10,000 BTC to a cold wallet following the Terra-LUNA crisis. Since then, Do Kwon has been gradually transferring Bitcoin from the cold wallet to the crypto bank Sygnum, effectively cashing out millions.

The latest transfer occurred from the LFG crypto wallet, which was established in January 2021. According to on-chain data, all 5,292 BTC held in the LFG wallet were deposited into an unknown wallet, raising further questions about the movement of these funds.

Cryptocurrency Exodus During Court Proceedings

Moreover, Terra co-founder Do Kwon and TFL have been involved in other withdrawals of cryptocurrency assets during the Montenegro court proceedings. They transferred 1.8 million Convex Finance (CVX) tokens worth nearly $8.7 million.

In May, stablecoins worth $400,000 and Terra Classic (LUNC) valued at $150,000 were withdrawn from wallets allegedly managed by Do Kwon, being sent to a separate wallet. South Korean prosecutors have claimed that Do Kwon or an affiliate has moved crypto assets worth $29 million since his arrest.

In another intriguing twist, as reported by the media Do Kwon exchanged Bitcoin worth $190,000 from the Luna Foundation Guard for cash in Serbia, further highlighting the complexity of the situation.

Lastly, Swiss prosecutors recently froze crypto assets and fiat currency associated with Terraform Labs and Do Kwon in Sygnum, following a request from the New York Federal Prosecutors Office and the SEC. These actions indicate an intensified scrutiny of the transactions and activities surrounding Terra and its key figures.

The evolving situation surrounding Terra co-founder Do Kwon and the Luna Foundation Guard’s Bitcoin holdings has attracted significant attention from regulators and the crypto community alike. As more details emerge, it remains to be seen what implications these moves will have for the future of Terra and the individuals involved.