Terra Founder Do Kwon’s $163 Million Bitcoin Withdrawal Raises Eyebrows; Here’s the Whole Truth

The post Terra Founder Do Kwon’s $163 Million Bitcoin Withdrawal Raises Eyebrows; Here’s the Whole Truth appeared first on Coinpedia Fintech News

In a recent development that has captivated regulators and the crypto community, Do Kwon, the co-founder of Terra, and his associates have made a substantial withdrawal of Bitcoin linked to the Luna Foundation Guard (LFG). Approximately $163 million worth of Bitcoin, totaling 5,292 Bitcoins, was moved from a Binance wallet owned by the Luna Foundation to an unknown wallet on Monday.

What is the actual truth? Let’s dive in.

What’s Up With Terraform Labs and Do Kwon?

This significant move comes amidst the backdrop of ongoing court proceedings and investigations involving Terraform Labs (TFL) and Do Kwon. The US Securities and Exchange Commission (SEC) revealed that Do Kwon and TFL had covertly 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.

Lingering Questions

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

Read More: Do Kwon’s Bail Request of $428K Granted by Montenegro Court in Fake Passport Case

Suspicious Withdrawals

In addition to the Bitcoin transfer, Terra co-founder Do Kwon and TFL have also been involved in other significant cryptocurrency withdrawals during the Montenegro court proceedings. They transferred 1.8 million Convex Finance (CVX) tokens, with a value of nearly $8.7 million.

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

Kwon Crackdown

In a twist of events, Do Kwon reportedly exchanged Bitcoin worth $190,000 from the Luna Foundation Guard for cash in Serbia, further adding to the complexity of the situation.

Lastly, Swiss prosecutors have frozen crypto assets and fiat currency associated with Terraform Labs and Do Kwon in Sygnum. This action followed a request from the New York Federal Prosecutors Office and the SEC, indicating an intensified scrutiny of the transactions and activities surrounding Terra and its key figures.

As more details emerge, the implications of these moves on the future of Terra and the individuals involved remain uncertain.