Amid the ongoing liquidation of Terraform Labs and an extradition battle involving its founder Do Kwon, a wallet linked to both entities has successfully moved $62.8 million worth of Bitcoin.
According to data from Arkham, the address associated with embattled blockchain company Terraform Labs and its arrested founder, Do Kwon, It was transferred 1,075 Bitcoin (BTC) to a new wallet on September 2nd.
On-chain analytics from Arkham indicate that Terraform Labs has 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 must dissolve operations and close its business.
The settlement comes more than two years after the collapse of Cowan’s Terra blockchain in mid-2022, triggering a series of bankruptcies that reverberated throughout the crypto industry. Terra’s collapse is estimated to have caused more than $60 billion in damages, not counting the collateral damage from the failure of other companies like hedge fund Three Arrows Capital and Sam Bankman-Fried’s FTX.
Meanwhile, founder Du Quang fled shortly after the incident and spent months as an international fugitive. He was eventually arrested in Montenegro, where authorities executed an Interpol arrest warrant for document forgery.
After more than six months in a Montenegrin prison, Kwan was released amid an ongoing extradition dispute between the United States and his native South Korea.
There have been a raft of Montenegrin court orders that previously allowed him to be transferred to either country, but his extradition remains in dispute at the time of writing. If tried and convicted in South Korea, the disgraced cryptocurrency tycoon could spend up to 40 years in prison for defrauding thousands of investors and misleading the public about the safety of Terra.