Bitcoin connected to Luna Foundation Guard is being transferred as Judge rejects Terra founder Do Kwon’s request to dismiss the US SEC lawsuit.
Terraform Labs (TFL) and its co-founder Do Kwon have moved millions worth of Bitcoin and other cryptocurrencies in recent months. Kwon’s associates have begun selling BTC linked to Luna Foundation Guard after moving 5292 bitcoins to another wallet last month. This information has been confirmed by a South Korean news outlet.
Is Terra’s Do Kwon Selling LFG-Linked Bitcoin?
While Do Kwon is in custody in Montenegro, his associates, managing his wallets, moved 239 BTC out of the 5292 BTC linked to Luna Foundation Guard, as reported by Digital Asset. They transferred these funds to another wallet address “bc1q42,” which now holds 5053.26 BTC, worth $146 million.
The US Securities and Exchange Commission (SEC) accused Do Kwon and TFL of secretly transferring 10,000 BTC to a cold wallet following the Terra-LUNA crisis. Since then, Do Kwon has been transferring Bitcoin from the cold wallet to crypto bank Sygnum and cashing out millions.
The recent transfer came from the LFG crypto wallet, which was established in January 2021. After Do Kwon’s arrest, these transactions became more frequent. In addition to the BTC transfer, Terraform Labs moved 1.8 million Convex Finance (CVX) tokens, valued at nearly $8.7 million.
Terraform Labs’ Request to Dismiss SEC Lawsuit Denied by Court
Lawyers representing TFL and Do Kwon tried to get the US SEC lawsuit dismissed, arguing that the court lacked jurisdiction. Terra also referred to a previous ruling in the SEC v. Ripple Labs case by Judge Torres. However, Judge Rakoff rejected the motion to dismiss the lawsuit and did not consider Judge Torres’ ruling as relevant.
As a result of these developments, Terra (LUNA) price dropped 0.5% in the last 24 hours and is currently trading at $0.56. Meanwhile, LUNC price increased by 0.5% in the past 24 hours, trading at $0.000078.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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