Guard

Ergo

Terra

Foundation

Signum

Prosecutors from Seoul suspect that Terraform Labs and its co-founder, Do Kwon, still possess a substantial sum of money, specifically 130 billion won ($100 million), held in a Swiss bank account. This comes after recent legal action against ten associates of Terraform Labs, including co-founder Shin Hyun-seong, also known as Daniel Shin.



<h2 id="south-korean-prosecutors-and-sec-allege-swiss-bank-account-connection">South Korean prosecutors and SEC allege Swiss bank account connection</h2>



According to local journalist Park Beom-soo, following the indictment of Terraform Labs, Do Kwon and his associates allegedly <a href="https://www.digitalasset.works/news/articleView.html?idxno=2310" rel="nofollow noopener" target="_blank">transferred</a> 10,000 bitcoin (BTC) to Sygnum Bank, a fintech bank headquartered in Switzerland. 



The Seoul Southern District Prosecutor&#8217;s Office has been closely monitoring the movement of Terra-linked Bitcoin and revealed this information during a press conference discussing the recent indictment.



<figure class="wp-block-image size-full"><img width="936" height="318" src="https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644.png" alt="image 644" class="wp-image-296170" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644.png 936w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644-300x102.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644-768x261.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644-24x8.png 24w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644-36x12.png 36w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644-48x16.png 48w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-644-150x51.png 150w" sizes="(max-width: 936px) 100vw, 936px" /><figcaption><a href="https://www.sec.gov/litigation/complaints/2023/comp-pr2023-32.pdf" target="_blank" rel="noreferrer noopener nofollow">The U.S. SEC charges against Do Kwon revealed the 10,000 bitcoin being sent to a Switzerland-based financial institution on page 50.</a></figcaption></figure>



The prosecutor&#8217;s office spokesperson stated, &#8220;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.&#8221; The investigation into Terraform Labs and Do Kwon&#8217;s financial dealings continue, and more information may come to light.



<h2 id="lfg-8217-s-role-in-the-terra-collapse">LFG&#8217;s role in the Terra collapse</h2>



Before Terra&#8217;s collapse, Luna Foundation Guard (LFG), an organization established to protect the blockchain stablecoin UST&#8217;s dollar peg, amassed a significant amount of bitcoin. These funds were intended to prevent UST from dropping below $1 parity, but the fallout was so severe that LFG and Terra&#8217;s leaders, including Do Kwon, could not save it.



<figure class="wp-block-image size-full"><img loading="lazy" width="936" height="508" src="https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645.png" alt="image 645" class="wp-image-296183" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645.png 936w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645-300x163.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645-768x417.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645-24x13.png 24w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645-36x20.png 36w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645-48x26.png 48w, https://www.cryptopolitan.com/wp-content/uploads/2023/04/image-645-150x81.png 150w" sizes="(max-width: 936px) 100vw, 936px" /><figcaption><a href="https://oxt.me/BOOKMARK/633DD89A9B37194E692B4574" target="_blank" rel="noreferrer noopener nofollow">Onchain visualization of the LFG Bitcoin movements.</a></figcaption></figure>



LFG released an audit claiming that they used more than 80,000 BTC to defend the coin&#8217;s peg after it was speculated that they did not use all the funds to protect the stablecoin. 



However, OXT researcher Ergo BTC <a href="https://twitter.com/ErgoBTC/status/1577732461257232385?s=20" rel="nofollow noopener" target="_blank">found</a> that the blockchain &#8220;tells a different story.&#8221; Ergo discovered a group of fifteen significant Binance withdrawals made to a single address, which was then consolidated and used in a series of transactions spanning several months.



Ergo explained that the transactions continued for many months, leaving a trail of evidence for investigators. Park Beom-soo&#8217;s report further <a href="https://twitter.com/ErgoBTC/status/1650828462569996291?s=20" rel="nofollow noopener" target="_blank">confirmed</a> that the on-chain activity Ergo observed aligns more closely with the Seoul prosecutor&#8217;s report than the story told by Do Kwon and the LFG audit.

Seoul prosecutors allege $100 million in Swiss bank account linked to Terra co-founder Do Kwon

Table of Contents

Cryptopolitan_News

Other articles published on Apr 27, 2023

Crypto Market Volatility Spikes Amid $350M in Liquidations

Hong Kong SFC Will Issue Crypto License Guidelines in May

Bipartisan Group Introduces Bill Aimed at Preventing Crypto-Funded Crime

Near Blockchain operating system is now live

Meta Still Committed to Metaverse, Expects Division Losses to Increase

Coincidence? Bitcoin developer visited CIA, then Satoshi Nakamoto disappeared

Join our free newsletter for daily crypto updates!