An undisclosed entity has transferred over $160 million worth of Bitcoin from a wallet allegedly associated with Luna Foundation Guard (LFG), an organization connected to Terraform Labs and its co-founder, Do Kwon. The transaction occurred on July 3, moving 5,292 Bitcoin (BTC) from an LFG address to a wallet seemingly unrelated to Terra. At the time of the transfer, the crypto assets were valued at approximately $161 million.
Blockchain data indicates that the reported LFG wallet had a balance of around 6,983 BTC in October 2022. Over the past nine months, multiple transactions have been made from this wallet, transferring funds to various addresses. As of the publication date, the wallet contained a balance of 0.152427 BTC, equivalent to roughly $4,649.
While some South Korean news outlets have claimed that the sender’s wallet address is linked to LFG, Cointelegraph was unable to independently verify this information. LFG was established as an effort to stabilize the volatility of LUNA tokens by securing the project with TerraUSD. However, this approach ultimately failed.
The exact amount of digital assets that Kwon or other Terra individuals with access may have moved during Terra’s collapse remains uncertain. In February, the U.S. Securities and Exchange Commission reported that Kwon and Terra were involved in laundering over $100 million worth of BTC. Additionally, in April, South Korean prosecutors discovered over $314 million in crypto assets associated with Kwon and his associates, freezing some of those funds.
Kwon, who allegedly evaded authorities for several months following Terra’s collapse, was arrested in Montenegro in March on charges related to forged travel documents. In June, he and former Terra chief financial officer Han Chong-joon were sentenced to four months in prison.
This incident highlights the ongoing challenges faced by the cryptocurrency industry, including security concerns and regulatory scrutiny. The movement of such a significant amount of Bitcoin from an LFG-controlled wallet raises questions about the implications for Terra and its associated organizations.