Is this Do Kwon’s wallet? Wanted Terra founder may still have $140 million on hand

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Key points to remember

  • An entity associated with Do Kwon and Terra currently has over $140 million worth of Bitcoin in its wallet.
  • Although still unidentified, the entity funded Luna Foundation Guard’s official portfolio on May 16, suggesting it has close ties to the organization.
  • This same entity sent around 4204 BTC to OKX and KuCoin; these may be the funds that the South Korean authorities are currently trying to freeze.

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An unidentified entity somehow associated with Do Kwon and Terra has gotten their hands on over $140 million in Bitcoin.

The Bitcoin Paper Trail

There is a chance that Terra founder Do Kwon still has access to over $140 million in Bitcoin.

According to research published on Twitter by Ergo BTC, member of OXT Research, it is possible that Do Kwon, Luna Guard Foundation (LFG) or another entity associated with Terra has more than 6,983.21 BTC (worth approximately $140,013,360 at the time of writing) in a wallet whose address begins with BC1QNF.

Terra’s ecosystem collapsed in early May, when its algorithmic stablecoin, UST, disintegrated and went into a death spiral, directly wiping out over $43 billion in value in a matter of days. During the collapse, Kwon, the charismatic figurehead of the crypto project, said he would deploy LFG Bitcoin Reserves (worth over $3 billion at the time) to keep the stablecoin from skyrocketing. However, critics suspect Kwon pocketed some of the funds instead of using them to stabilize the project.

The entity behind the BC1QNF wallet originally received over 12,812.91 BTC ($256,898,845 at today’s prices) from 15 different Binance accounts on May 11-12 into a different wallet, BC1QJUV. This wallet then sent 12,147.91 BTC to a secondary wallet, BC1QU8. The remarkable thing about this new wallet is that it interacted directly with LFG official addressby sending him 312.99 BTC on May 16.

After funding LFG, the entity began moving its remaining 11,834.92 BTC ($237,290,146) between wallets. Frequently, a fraction of the funds (ranging from 1 BTC to 961 BTC) would be sent to wallets hosted on crypto exchanges OKX and KuCoin, while most of the Bitcoin would be transferred to a new self-custodian wallet and then another. Most of the funds were transferred to 17 different wallets, including their latest, BC1QNF.

The chain of transactions. Source: OXT

Bitcoin withdrawn to OKX and KuCoin through 13 different transactions amounts to approximately 4204.31 BTC or approximately $84,296,415 at today’s prices.

Crypto Briefing‘stake

To be clear, there is no solid evidence that Kwon, Terraform Labs, or LFG have any control over these parts. However, the fact that the entity provided funds to the official LFG wallet in the aftermath of the collapse of the entire Terra ecosystem strongly indicates that the entity in charge of these wallets is likely associated in some way. or another to the project.

Interestingly, South Korean authorities have recently called on KuCoin and OKX to freeze 3,313 BTC (worth approximately $66,425,650 at the time of writing) on ​​their exchanges, claiming the coins belong to Kwon. CryptoQuant, the crypto-analytics firm that assisted South Korean police in their investigation, also reportedly traced the funds to LFG’s wallet on Binance. Although the figures issued by CryptoQuant and OXT do not match exactly, the two research centers have found links between LFG, Binance, OKX and KuCoin.

OXT’s research isn’t over either. The entity had approximately 11,834.92 BTC when it started transferring funds. He still has 6,983.21 BTC in his final wallet and sent about 4,204.31 BTC to the centralized exchanges: indeed, about 647.4 BTC, or $12,980,370, is still missing. Most likely, these coins were sent to other wallets somewhere along the line; it will be up to prosecutors and chain sleuths to pursue the money trail.

Following the issuance of the Interpol Red Notice, Kwon is currently sought in 195 countries. He recently took to Twitter, however, to insist he was not “on the run”. He also has fired the South Korean Twitter investigation, stating that it does not use KuCoin or OKX.

Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other cryptocurrencies.

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