Following recent legal actions against ten Terraform Labs associates, including co-founder Shin Hyun-seong (Daniel Shin), Seoul prosecutors believe that Terraform Labs and co-founder Do Kwon still possess substantial money, specifically 130 billion won ($100 million), held in a Swiss bank account.
South Korean prosecutors and SEC allege Swiss account holds $100 million
Local journalist Park Beom-soo reported that after Terraform Labs’ indictment, Do Kwon and his associates allegedly transferred 10,000 bitcoin (BTC) to Sygnum Bank, a Zurich-based digital asset financial institution. The Seoul Southern District Prosecutor’s Office has been monitoring Terra-linked Bitcoin movements and disclosed this information during a press conference addressing the recent indictment.
A spokesperson for the prosecutor’s office stated, “We are actively tracking the bitcoin owned by LFG (Luna Foundation Guard), but some of it has been converted into cash and deposited into the Signum account.” The investigation into Terraform Labs and Do Kwon’s financial activities is ongoing, and more information may be revealed.
LFG’s role in Terra’s collapse
Before Terra’s collapse, Luna Foundation Guard (LFG), an organization established to defend the blockchain stablecoin UST’s dollar peg, amassed a significant amount of bitcoin. The funds were intended to prevent UST from dropping below $1 parity, but the fallout was so severe that LFG and Terra’s leaders, including Do Kwon, could not save it.
After the collapse, LFG released an audit claiming that they used more than 80,000 BTC to defend the coin’s peg. However, OXT researcher Ergo BTC found that the blockchain “tells a different story.” Ergo discovered a group of fifteen significant Binance withdrawals made to a single address, which was then consolidated and used in a series of transactions spanning several months.
Ergo explained that the transactions continued for many months, leaving a trail of evidence for investigators. Park Beom-soo’s report further confirmed that the on-chain activity Ergo observed aligns more closely with the Seoul prosecutor’s report than the story told by Do Kwon and the LFG audit.