In a surprising turn of events, an unidentified entity has successfully transferred over $160 million worth of Bitcoin from a wallet allegedly linked to the Luna Foundation Guard (LFG). The LFG has strong ties to Terraform Labs and its co-founder, Do Kwon. The transaction, which took place on July 3, involved the movement of 5,292 Bitcoin (BTC) tokens.
While South Korean news outlets claim that the sender’s wallet address was associated with the LFG. It is worth noting that the LFG was established to stabilize the volatility of LUNA tokens by backing the project with TerraUSD. Regrettably, this approach ultimately proved unsuccessful.
At the time of publication, the BTC transfer mentioned above was estimated to be worth approximately $160 million. This transfer represents the latest in a series of movements of digital assets from wallets controlled by the LFG, occurring in the aftermath of the collapse of Terra in May 2022.
Analysis of blockchain data reveals that the reported LFG wallet held a balance of approximately 6,983 BTC back in October 2022. Over the past nine months, multiple transactions have taken place, involving the movement of funds to different addresses. The wallet only contains a balance of 0.152427 BTC, equivalent to around $4,649.
It remains to be seen how much digital assets Do Kwon or other individuals associated with Terra may have transferred amidst the collapse of the project. In February, the United States Securities and Exchange Commission disclosed that Kwon and Terra were involved in laundering over $100 million worth of BTC.
Furthermore, South Korean prosecutors identified more than $314 million in cryptocurrency associated with Kwon and his associates, some of which were subsequently frozen.
Notably, Kwon managed to evade authorities for several months following Terra’s collapse before being apprehended in Montenegro in March.
Also Read: Swiss Authorities Freeze Assets Worth $26M Linked to Do Kwon
His arrest was on charges of allegedly utilizing forged travel documents. Recently, in June, Kwon and former Terra chief financial officer Han Chong-joon were both sentenced to four months in prison by the authorities.
