Amid Terraform Labs’ ongoing unwind and the extradition battle involving its founder Do Kwon, a wallet linked to both entities moved $62.8 million worth of Bitcoin.
According to data from Arkham, an address associated with the beleaguered blockchain firm Terraform Labs and its detained founder, Do Kwon, transferred 1,075 Bitcoin (BTC) to a new wallet on Sept. 2.
On-chain analytics from Arkham indicated that Terraform Labs had approximately $2 million in altcoins remaining in its reserves. As part of a court agreement with the U.S. Securities and Exchange Commission (SEC), Terraform Labs is required to disband operations and close its business.
The settlement was reached more than two years after the collapse of Kwon’s Terra blockchain in mid-2022, which triggered a cascade of bankruptcies that reverberated throughout the cryptocurrency industry. Reports estimate that the Terra implosion caused more than $60 billion in damages, not including the collateral fallout from other company failures like hedge fund Three Arrows Capital and Sam Bankman-Fried’s FTX.
Meanwhile, founder Do Kwon fled shortly after the crash and spent months as an international fugitive. He was eventually apprehended in Montenegro, where authorities executed an Interpol warrant for his arrest on charges of document forgery.
Following more than six months in a Montenegrin prison, Kwon was released during an ongoing extradition dispute between the U.S. and his home country, South Korea.
A plethora of Montenegrin court orders previously authorized his removal to either country, but his extradition remained in contention at press time. If tried and convicted in South Korea, the fallen crypto tycoon could serve up to 40 years in prison for defrauding thousands of investors and misleading the public about Terra’s safety.
