Is This Do Kwon’s Wallet? Wanted Terra Founder May Still Have $140M at Hand

Key Takeaways

  • An entity related to Do Kwon and Terra at the moment has over $140 million value of Bitcoin in its pockets.
  • While nonetheless unidentified, the entity funded Luna Foundation Guard’s official pockets on May 16, suggesting it has shut ties to the group.
  • This identical entity despatched roughly 4204 BTC to OKX and KuCoin; these often is the funds that South Korean authorities are at the moment trying to freeze.

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An unidentified entity related not directly with Do Kwon and Terra has its palms on over $140 million in Bitcoin. 

The Bitcoin Paper Trail

There’s an opportunity Terra founder Do Kwon nonetheless has entry to over $140 million in Bitcoin.

According to analysis published on Twitter by OXT Research member Ergo BTC, it’s potential that Do Kwon, Luna Guard Foundation (LFG), or one other entity related to Terra has over 6,983.21 BTC (value about $140,013,360 at the time of writing) in a pockets whose tackle begins with BC1QNF.

Terra’s ecosystem collapsed in early May when its algorithmic stablecoin, UST, depegged and flew right into a loss of life spiral, immediately wiping out greater than $43 billion in worth in a matter of days. During the meltdown, Kwon, the crypto challenge’s charismatic figurehead, said he’d deploy LFG’s Bitcoin reserves (value over $3 billion at the time) to cease the stablecoin from spiraling. However, critics suspect that Kwon pocketed a number of the funds as an alternative of utilizing them to stabilize the challenge.

The entity behind the BC1QNF pockets initially acquired greater than 12,812.91 BTC ($256,898,845 at at this time’s costs) from 15 completely different Binance accounts on May 11 and 12 in a distinct pockets, BC1QJUV. This pockets then despatched 12,147.91 BTC to a secondary pockets, BC1QU8. The notable factor about this new pockets is that it interacted immediately with LFG’s official address, sending it 312.99 BTC on May 16. 

After financing LFG, the entity began transferring its remaining 11,834.92 BTC ($237,290,146) from pockets to pockets. Frequently, a fraction of the funds (various from 1 BTC to 961 BTC) could be despatched to wallets hosted on crypto exchanges OKX and KuCoin, whereas the majority of the Bitcoin could be switched to a brand new self-custodial pockets after which one other. Most funds have been moved throughout 17 completely different wallets, together with their newest, BC1QNF. 

The chain of transactions. Source: OXT

The Bitcoin withdrawn to OKX and KuCoin by way of 13 completely different transactions quantities to roughly 4204.31 BTC or about $84,296,415 at at this time’s costs.

Crypto Briefing’s Take

To be clear, there isn’t a strong proof that Kwon, Terraform Labs, or LFG have any management over these cash. However, the truth that the entity supplied funds to LFG’s official pockets within the direct aftermath of the collapse of the whole Terra ecosystem strongly signifies that the entity answerable for these wallets is probably going one way or the other related to the challenge.

Interestingly, South Korean authorities just lately called on KuCoin and OKX to freeze 3,313 BTC (value about $66,425,650 at the time of writing) on their exchanges, claiming the cash belong to Kwon. CryptoQuant, the crypto analytics agency that helped the South Korean police of their investigation, additionally reportedly traced the funds again to LFG’s pockets on Binance. While the numbers issued by CryptoQuant and OXT don’t precisely match, each analysis hubs have discovered connections between LFG, Binance, OKX, and KuCoin. 

OXT’s analysis isn’t full both. The entity owned about 11,834.92 BTC when it started transferring funds. It nonetheless has 6,983.21 BTC in its ultimate pockets and despatched roughly 4204.31 BTC to centralized exchanges: in impact, about 647.4 BTC, or $12,980,370, are nonetheless unaccounted for. Most doubtless, these cash have been despatched to different wallets someplace alongside the road; it is going to be as much as prosecutors and on-chain sleuths to chase the cash path.

Following Interpol’s pink discover issuance, Kwon is at the moment wished in 195 international locations. He just lately took to Twitter, nonetheless, to insist that he was not “on the run.” He has additionally dismissed the South Korean investigation on Twitter, stating that he doesn’t use KuCoin or OKX.

Disclaimer: At the time of writing, the writer of this piece owned BTC, ETH, and several other different cryptocurrencies.

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About the Author: Daniel