CoinDesk Reports That Do Kwon’s Terra took 4.6 trillion won in slush money.
After Terra’s May 7 crash, Uppsala Security and CoinDesk Korea investigated using on-chain data forensics. On June 14, the initial article tracked currency movement around the wallet (0x8d47f08ebc5554504742f547eb721a43d4947d0a) alluded to as the beginning point of the Terra collapse.
USDT, USDC, and UST totaling $7.4 billion were put into two Binance wallets; Terraform Labs and Luna Foundation Guard. On-chain data revealed it was his wallet (LFG). Coindesk Korea found out whether the Terra event was insider-related. Uppsala Security and CoinDesk Korea tracked the transfer of $3.6 billion in undisclosed assets.
The new allegations and according to research conducted by CoinDesk Korea, Terra Labs has roughly $3.6 billion in USDT and UST, which might be used to manipulate prices or launder money via cryptocurrency exchanges and decentralized financial institutions (DeFi). However, in order to validate this, the authorities will need to verify with Binance, Coinbase, Huobi, and Kucoin.
CoinDesk Korea report added that CEO Kwon Do-Hyung has disclosed the use of data such as LUNA, UST, and BTC through his SNS or Terra Foundation. For instance, if TerraUSD depegging (one dollar value mismatch) occurs, the foundation will defend the price with the cash it controls.
However, analysis of the on-chain data revealed that the source and use history of wallets directly owned or controlled by Terraform Labs and Luna Foundation Guard (LFG) is unknown.
The illicit monies discovered in this manner totaled $3.6 billion (about 4.6 trillion won) in UST (Tera USD) and USDT (Tether). Specifically, it was discovered that the funds may have been utilized for price manipulation and money laundering of the previous LUNA (now LUNC) in DeFi (Decentralized Finance) and controlled exchanges.
There have been other accusations of illegal activity against Kwon and his firm even before the Terra disaster. Kwon’s alleged $2 billion cash-out has been widely publicized, although he has vehemently denied it.