Skip to main content

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

In the wake of the recent legal action against ten associates of Terraform Labs, which included the co-founder Shin Hyun-seong, known to many as Daniel Shin, it appears that prosecutors from Seoul are convinced that Terraform Labs and co-founder Do Kwon are still in possession of a considerable sum of money, specifically 130 billion won ($100 million), held in a Swiss bank account.

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

As reported by Park Beom-soo, a local journalist, following the Terraform Labs indictment, Do Kwon and his associates allegedly transferred 10,000 bitcoin (BTC) to a fintech bank headquartered in Switzerland. Sygnum Bank, a digital asset financial institution based in Zurich, was reportedly the recipient of this sizable transfer. It has since come to light that the Seoul Southern District Prosecutor’s Office has been closely monitoring the movement of Terra-linked bitcoin and has revealed this information during a press conference held to discuss the recent indictment.

The prosecutor’s office’s spokesperson stated, “We are actively tracking the bitcoin owned by LFG (Luna Foundation Guard), but some of it has been converted into cash and deposited into the Signum account. As outlined in the SEC complaint, the amount transferred is approximately 100 million dollars (about 130 billion won).” It would appear that the investigation into Terraform Labs and Do Kwon’s financial dealings is ongoing, and further details may come to light concerning this matter.

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

Just before Terra collapsed, Terra’s Luna Foundation Guard (LFG), an organization created to defend the blockchain stablecoin UST’s dollar peg, accumulated a massive amount of bitcoin. The funds were meant to protect UST from dropping below the $1 parity but the fallout was so bad, LFG and Terra’s leaders like Do Kwon could not save it. After the collapse, it was speculated that LFG did not use all the funds to defend the stablecoin, and LFG fired back by releasing an audit that claimed the group used more than 80,000 BTC to defend the coin’s peg.

However, OXT researcher Ergo BTC discovered that the blockchain “tells a different story” in a Twitter thread from October 2022. Ergo said that while LFG may have declared ownership of a single wallet holding 313 BTC, their actions have left a breadcrumb trail of evidence that could be easily followed. Ergo discovered a group of fifteen significant Binance withdrawals made to a single address. The coins were then consolidated and used in a series of transactions spanning several months. Shortly after the first withdrawal from Binance, 665 BTC were spent on Kucoin, and on May 16, the remaining 313 BTC were transferred to the new LFG address, providing evidence of their association.

Ergo further said that the sequence of transactions continued for many months and “unfortunately for the LFG, these (reused addresses) were active prior the depeg event, providing additional clues for investigators.” The researcher further added that while the LFG may argue that the pseudonymity of BTC provides them with a veil of anonymity, it is clear that the activity the researcher observed is “directly related to the funding of the LFG treasury.” Park Beom-soo’s report further confirmed to Ergo that the onchain activity the OXT researcher monitored aligns more closely with the Seoul prosecutor’s report than the story told by Do Kwon and the LFG audit.

What are your thoughts on the ongoing investigation into Terraform Labs and the allegations that the company and co-founder Do Kwon are still in possession of a substantial sum of money? Do you believe that the findings from the U.S. SEC and the Seoul Southern District Prosecutor’s Office align? Share your thoughts about this subject in the comments section below.



from Bitcoin News https://ift.tt/0LfXcUT
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more