Kelvin Daminabo
A wallet related to Do Kwon and Terraform Labs has recently transferred $62.8 million in Bitcoin, stirring interest in the cryptocurrency sphere. This event unfolds in the midst of Terraform Labs’ ongoing reorganization and the legal tussle involving Kwon.
Arkham data reveals that the wallet linked to Terraform Labs and Do Kwon shifted 1,075 Bitcoin to a new wallet on September 2. Following this transaction, Terraform Labs retains about $2 million in alternative coins.
As part of a settlement agreement with the US Securities and Exchange Commission (SEC), Terraform Labs faces the requirement to dissolve its operations and shut down. This deal comes more than two years after Kwon’s Terra blockchain collapsed in mid-2022, leading to a chain of insolvencies and damages exceeding $60 billion.
Kwon, who evaded authorities following the collapse, got arrested in Montenegro and spent six months in custody before being released amidst an ongoing legal dispute over extradition between the US and South Korea. In South Korea, if found guilty, Kwon could potentially serve a 40-year sentence for duping investors and providing false information about Terra’s security.
The transfer of $62.8 million in Bitcoin has stirred concerns regarding the division of Terraform Labs’ assets and the well-being of its investors. With the extradition battle ongoing, onlookers in the cryptocurrency community await a conclusion, hoping for a resolution and accountability.