As the US SEC lawsuit against Terraform Labs (TFL) and its co-founder Do Kwon continues, a judge has denied Do Kwon’s motion to dismiss the case. Despite this setback, Do Kwon and his affiliates have been active in moving and selling millions of dollars worth of Bitcoin and other cryptocurrencies in recent months.
According to confirmed on-chain data and reports from a South Korean news outlet, last month 5292 bitcoins were transferred to another wallet and subsequently sold by affiliates of Do Kwon, linked to the Luna Foundation Guard.
Do Kwon, Terra Founder, Accused of Selling LFG-Linked Bitcoin
Despite being imprisoned in Montenegro, Do Kwon’s affiliates have been actively managing his wallets. Digital Asset, a company that claims to track wallets belonging to TFL, LFG, and Do Kwon, reported that 239 BTC out of 5292 BTC linked to Luna Foundation Guard were moved by his affiliates.
On July 3rd, all remaining 5292 BTC, worth $163 million, were transferred from a Binance wallet of the Luna Foundation (LFG) to an unknown wallet by either Do Kwon or his affiliates. On-chain data shows that after a transfer to the wallet address “bc1q42”, the wallet address “bc1qs6” now holds 5053.26 BTCs, worth $146 million.
The SEC has accused Do Kwon and TFL of secretly transferring 10,000 BTC to a cold wallet following the Terra-LUNA crisis. Do Kwon has continued to move Bitcoin from this cold wallet to the crypto bank Sygnum, cashing out millions of dollars
The most recent transfer occurred from an LFG crypto wallet that was opened in January 2021. On-chain data shows that 5292 BTC from this LFG wallet were deposited into an unknown wallet. These transactions have become more frequent since Do Kwon’s arrest in Montenegro. Terraform Labs has also transferred 1.8 million Convex Finance (CVX) tokens, worth nearly $8.7 million.
In the past day, Terra (LUNA) has experienced a 0.5% decrease in value, bringing its current trading price to $0.56. Conversely, LUNC has seen a 0.5% increase in value over the same time period and is now trading at $0.000078.
