Seoul Prosecutors Believe Terra Co-Founder Do Kwon Still in Possession of $100 Million Held in Swiss Bank Account

In the aftermath of the caller ineligible enactment against 10 associates of Terraform Labs, which included the co-founder Shin Hyun-seong, known to galore arsenic Daniel Shin, it appears that prosecutors from Seoul are convinced that Terraform Labs and co-founder Do Kwon are inactive successful possession of a sizeable sum of money, specifically 130 cardinal won ($100 million), held successful a Swiss slope account.

South Korean Prosecutors Claim Do Kwon and Terraform Labs Still Own $100 Million Tucked Away successful a Swiss Bank Account, SEC Complaint Backs Theory

As reported by Park Beom-soo, a section journalist, pursuing the Terraform Labs indictment, Do Kwon and his associates allegedly transferred 10,000 bitcoin (BTC) to a fintech slope headquartered successful Switzerland. Sygnum Bank, a integer plus fiscal instauration based successful Zurich, was reportedly the recipient of this sizable transfer. It has since travel to airy that the Seoul Southern District Prosecutor’s Office has been intimately monitoring the question of Terra-linked bitcoin and has revealed this accusation during a property league held to sermon the caller indictment.

The U.S. Securities and Exchange Commission’s charges against Do Kwon besides sermon the 10,000 bitcoin being sent to a Switzerland-based fiscal instauration connected leafage 50.

The prosecutor’s office’s spokesperson stated, “We are actively tracking the bitcoin owned by LFG (Luna Foundation Guard), but immoderate of it has been converted into currency and deposited into the Signum account. As outlined successful the SEC complaint, the magnitude transferred is astir 100 cardinal dollars (about 130 cardinal won).” It would look that the probe into Terraform Labs and Do Kwon’s fiscal dealings is ongoing, and further details whitethorn travel to airy concerning this matter.

Onchain Researcher: LFG ‘Failed to Account for the Trail of Bread Crumbs Left by the Change Outputs’

Just earlier Terra collapsed, Terra’s Luna Foundation Guard (LFG), an enactment created to support the blockchain stablecoin UST’s dollar peg, accumulated a monolithic magnitude of bitcoin. The funds were meant to support UST from dropping beneath the $1 parity but the fallout was truthful bad, LFG and Terra’s leaders similar Do Kwon could not prevention it. After the collapse, it was speculated that LFG did not usage each the funds to support the stablecoin, and LFG fired backmost by releasing an audit that claimed the radical utilized much than 80,000 BTC to support the coin’s peg.

An onchain visualization of the LFG Bitcoin movements tin beryllium seen here.

However, OXT researcher Ergo BTC discovered that the blockchain “tells a antithetic story” successful a Twitter thread from October 2022. Ergo said that portion LFG whitethorn person declared ownership of a azygous wallet holding 313 BTC, their actions person near a breadcrumb way of grounds that could beryllium easy followed. Ergo discovered a radical of 15 important Binance withdrawals made to a azygous address. The coins were past consolidated and utilized successful a bid of transactions spanning respective months. Shortly aft the archetypal withdrawal from Binance, 665 BTC were spent connected Kucoin, and connected May 16, the remaining 313 BTC were transferred to the caller LFG address, providing grounds of their association.

Ergo further said that the series of transactions continued for galore months and “unfortunately for the LFG, these (reused addresses) were progressive anterior the depeg event, providing further clues for investigators.” The researcher further added that portion the LFG whitethorn reason that the pseudonymity of BTC provides them with a veil of anonymity, it is wide that the enactment the researcher observed is “directly related to the backing of the LFG treasury.” Park Beom-soo’s study further confirmed to Ergo that the onchain enactment the OXT researcher monitored aligns much intimately with the Seoul prosecutor’s study than the communicative told by Do Kwon and the LFG audit.

What are your thoughts connected the ongoing probe into Terraform Labs and the allegations that the institution and co-founder Do Kwon are inactive successful possession of a important sum of money? Do you judge that the findings from the U.S. SEC and the Seoul Southern District Prosecutor’s Office align? Share your thoughts astir this taxable successful the comments conception below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This nonfiction is for informational purposes only. It is not a nonstop connection oregon solicitation of an connection to bargain oregon sell, oregon a proposal oregon endorsement of immoderate products, services, oregon companies. Bitcoin.com does not supply investment, tax, legal, oregon accounting advice. Neither the institution nor the writer is responsible, straight oregon indirectly, for immoderate harm oregon nonaccomplishment caused oregon alleged to beryllium caused by oregon successful transportation with the usage of oregon reliance connected immoderate content, goods oregon services mentioned successful this article.