Questions Arise as $160 Million Worth of Bitcoin Transferred, Luna Foundation Guard Investigated

In a recent development, an unknown entity has executed a significant Bitcoin transfer, worth over $160 million, from a wallet connected to the Luna Foundation Guard (LFG).

This organization is associated with Terraform Labs and its co-founder, Do Kwon. The transfer has raised questions and intensified ongoing investigations surrounding Terra and its affiliated entities.

On July 3, the unidentified party moved 5,292 Bitcoin (BTC), equivalent to approximately $30,719 per coin, from an LFG address to a wallet that does not appear to be linked to Terra.

This transfer is part of a series of movements of crypto assets from LFG-controlled wallets, which have been occurring since the collapse of Terra in May 2022.

The Luna Foundation Guard was established to mitigate the volatility of LUNA tokens by supporting the project with TerraUSD.

However, this approach proved unsuccessful, leading to Terra’s collapse. The exact amount of digital assets moved by Kwon or other individuals associated with Terra during its collapse remains unclear.

In February, the United States Securities and Exchange Commission reported that Kwon and Terra were involved in laundering over $100 million worth of BTC.

South Korean prosecutors also identified more than $314 million in crypto assets connected to Kwon and his associates, some of which were subsequently frozen.

Kwon was arrested in Montenegro in March for allegedly using counterfeit travel documents, and he and former Terra chief financial officer Han Chong-joon were sentenced to four months in prison in June.

The recent Bitcoin transfer from an LFG-controlled wallet adds further complexity to the ongoing investigations surrounding Terra and its affiliated entities.

The implications of these movements and the future of the individuals involved remain uncertain as legal proceedings continue.