In recent months, Terraforms Labs (TFL) and co-founder Do Kwon have increasingly moved millions worth of Bitcoin and other cryptocurrency assets, leading analysts to question whether he wants to raise money for lawyers.
According to on-chain data confirmed by a South Korean news outlet outletLast month, Kwon’s employees started selling BTC related to Luna Foundation Guard after moving 5,292 BTC to another wallet last month.
The alleged bitcoin transfers
Although it is locked In Montenegro, Do Kwon remains active in the crypto space. Aside from transferring 239 BTC out of 5,292 BTC associated with the Luna Foundation Guard, either Do Kwon or its affiliates also made other transfers.
These transfers became more frequent after Do Kwons arrest in Montenegro in May this year. Terraform Labs too touched 1.8 million Convex Finance (CVX) tokens worth approximately $8.7 million. The data also shows that wallet address bc1qs6 now contains 5,053.26 BTC worth $146 million after a transfer to bc1q42.
In addition, the US Securities and Exchange Commission (SEC) announced that the embattled companies Do Kwon and Terraform Labs secretly moved 10,000 BTC to a cold wallet after the Terra LUNA crisis. Therefore, Do Kwon continues to transfer BTC from the cold wallet to cryptobank Sygnum and has so far withdrawn millions of dollars.
BTC price falls below $29,000 again | Source: BTCUSD on Tradingview.com
Transfers amid raging court battles
The ongoing transfers come amid the raging court battle between the two SEC v Terraform Labs Pte Ltd. Recently, attorneys for Do Kwon and Terraforms Labs filed a motion to dismiss the SEC’s lawsuit, saying it lacks jurisdiction.
They referred to Judge Torres’ decision in the SEC v. Ripple Labs case. However, the motion was dismissed by Judge Rakoff, who also dismissed Judge Torres’ landmark decision as setting precedent in the lawsuit.
Do Kwon used to be sentenced Sentenced to four months in prison by a court in Montenegro for using a fake passport. However, it is unclear what the next steps will be for Do Kwon once he is released from Montenegrin prison. He is reportedly facing multiple prison terms in different countries.
The US and South Korea are trying to extradite him on fraud charges related to his contribution to the collapse of Terraform Labs. However, the extradition process may not be that easy as neither the US nor South Korea have extradition treaties with Montenegro.
South Korea appears to be the likely destination for Do Kwon after his release from prison, according to the Supreme Court of Montenegro allegedly tries to extradite Do Kwon to his home country. If convicted in South Korea, the Terra founder faces up to 40 years in prison.
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