• Terraform Labs could be holding more than $159 million worth of crypto despite previous claims that they had lost most of their funds.
• Arbor Intelligence used on-chain sleuthing to uncover this information, and offered a bounty of 9519.263 Arkham tokens in exchange for the findings.
• The disgraced co-founder Do Kwon is facing criminal charges from US and South Korean authorities related to his involvement in the $40 billion collapse of the Terra ecosystem.
Terraform Labs Allegedly Holds Over $159 Million in Crypto
Terraform Labs could be holding more than $159 million worth of crypto assets, according to new on-chain sleuthing performed for Arkham Intelligence. This runs counter to the narrative put forward by the Luna Foundation Guard (LFG) last year, which claimed to hold only 313 Bitcoin, as well as 39,914 Binance Coin (BNB) and 1,973,554 Avalanche (AVAX).
Arbor Intelligence Incentivizes Sleuthing with Bounties
The sleuthing was incentivized by a bounty of 9519.263 Arkham’s newly launched native token (ARKM), which is currently worth nearly $5,000 at time of writing. Arkham is an intelligence exchange where buyers can place bounties on specific pieces of information. ErgoBTC and another anonymous on-chain researcher uncovered that Terraform Labs and/or its disgraced co-founder Do Kwon hold 5,292 Bitcoin (BTC) worth $153.10 million, as well as roughly $4.61 million worth of Ethereum (ETH) along with other crypto assets.
SEC & Swiss Authorities Investigate Do Kwon & Terraform
This February, the U.S Securities and Exchange Commission (SEC) alleged that Kwon transferred 10,000 Bitcoin from Terraform Labs and the LFG into a Swiss bank account as LUNA and UST were imploding. Swiss authorities reportedly froze $26 million worth of those assets last month after receiving requests from the New York Attorney’s Office and the SEC. Kwon was sentenced to four months in prison in Montenegro in June for using a forged Costa Rican passport; however he is also facing multiple charges arising from his involvement in the collapse of Terra’s ecosystem from both US and South Korean authorities who are seeking extradition for him.
Korean Government Investigates Crypto Fraud
Dan Sunghan, director of the financial crime investigation bureau at Seoul Southern District Prosecution Service says that Kwon could serve more than four decades behind bars if he is found guilty for fraud related to cryptocurrency activities within Korea’s borders . He pointed out that there has been an increased focus on prosecuting digital asset fraud due to rising public interest in cryptocurrencies across Asia in recent years .
Despite initial reports indicating otherwise , it seems clear now that Terraform Labs may have held onto significant amounts of crypto despite all its troubles . With multiple agencies now looking into Do Kwon’s activities , it remains unclear exactly how much money was involved or where it came from . Until then , we will just have to wait until further details emerge before any definitive conclusions can be made .