Bitcoin wallet linked to Terraform’s Do Kwon moved $62m

During Terraform Labs’ ongoing liquidation process and the extradition battle involving its founder Do Kwon, a wallet connected to both organizations moved $62.8 million worth of Bitcoin.

An address belonging to troubled blockchain firm Terraform Labs and its detained founder Do Kwon transferred 1,075 Bitcoin (BTC) to a new wallet on September 2, according to Arkham’s data.

Arkham’s on-chain analysis showed that Terraform Labs has around $2 million worth of altcoins left in its reserves. As part of a court settlement with the U.S. Securities and Exchange Commission (SEC), Terraform Labs is required to wind down its operations and close its business.

The deal comes more than two years after Kwon’s Terra blockchain crashed in mid-2022, triggering a series of bankruptcies that reverberated across the cryptocurrency industry. Reports estimate that the Terra crash caused more than $60 billion in losses, excluding the fallout from other corporate bankruptcies like hedge fund Three Arrows Capital and Sam Bankman-Fried’s FTX.

Meanwhile, founder Do Kwon fled shortly after the crash and lived as an international fugitive for months. He was eventually caught in Montenegro, and authorities issued an Interpol warrant for his arrest on charges of document forgery.

Kwon was released after spending more than six months in prison in Montenegro due to an extradition dispute between the United States and his home country, South Korea.

Multiple previous Montenegrin court orders allowed him to be sent back to both countries, but his extradition was still controversial at press time. If tried and convicted in South Korea, the fallen crypto king could face up to 40 years in prison for defrauding thousands of investors and misleading the public about Terra’s security.