Approximately $160 million worth of bitcoin has been moved from wallets associated with the Luna Foundation Guard (LFG), an organization connected to Terraform Labs and its co-founder Do Kwon. According to reports on July 5, an unknown group transferred 5 ,292 bitcoins from an LFG address to a wallet seemingly unrelated to Terra on July 3. This follows a series of transactions involving LFG wallets during and after Terra's crash in May 2022. The reported balance of LFG wallets in October 2022 was around 6,983 B TC, but recent transactions have reduced the balance to approximately 0.152427 BTC.
While South Korean news outlets claimed that the sender's wallet address was linked to LFG, Cointelegraph could not independently verify this information. LFG was established to stabilize the volatility of the LUNA token by backing the project with TerraUSD, but this initiative ultimately failed. It remains Uncertain how many digital assets individuals with access to Kwon or Terra may have transferred during the Terra crash. In February, the SEC reported that Kwon and Terra were involved in laundering over $100 million worth of BTC, and in April, South Korean prosecutors discovered over $314 million worth of assets associated with Kwon and his colleagues (some assets were subsequently frozen).
After Terra's collapse, Kwon reportedly evaded authorities for months and was arrested in Montenegro in March on suspicion of using forged travel documents. In June, both Kwon and Terra's former chief financial officer, Han Chong-joon, were sentenced to four months in prison. The recent movement of significant bitcoin holdings from LFG wallets adds to the ongoing saga surrounding Terra and its associated individuals, highlighting the challenges faced by the project and its aftermath.
