- Anonymous investigators discovered undisclosed wallets linked to Terraform Labs, containing more than $160M in digital assets.
- The revelation contradicts Luna Foundation Guard’s prior statement of having only 313 BTC in reserve.
As the crypto-sphere turns another page, a groundbreaking investigation has emerged from the Arkham Intel Exchange. In a thrilling first, a pair of anonymous on-chain detectives have pieced together a significant case that garnered the platform’s maiden bounty.
Contradicting Claims Stir Market Uncertainty
In the spotlight is Terraform Labs and its founder, Do Kwon, with undisclosed wallets linked to them found to be holding over $160M in digital assets, which contradicts the Luna Foundation Guard’s (LFG) earlier declaration of having a mere 313 BTC reserve. This discrepancy brings to question the LFG’s commitment to maintaining the TerraUSD (UST) dollar-peg, considering it depended heavily on this BTC reserve to repurchase UST from the market to safeguard against UST depegging. The revelation follows the May 2022 collapse of UST and LUNA that reportedly erased an estimated $40B in value.
Further examination of these wallets is anticipated, as the bounty issuer retains exclusive access to the data for a 90-day period, in line with Arkham’s policy.
Adding more layers to the mystery, Terraform Labs’ founder, Do Kwon, recently faced a four-month detention in Montenegro for using falsified documents, following the Securities and Exchange Commission’s multi-billion-dollar fraud allegations against him and Terraform Labs earlier in February.
Privacy vs. Accountability: Arkham’s Balancing Act
The Arkham Intel Exchange, notwithstanding its impressive inaugural bounty, has ignited a debate. Critics warn against the potential exploitation of the platform by unscrupulous elements to expose private information, inadvertently turning it into a surveillance marketplace.
Conversely, supporters laud the platform as a crucial instrument for revealing malpractice and providing whistleblowers with a secure conduit for revealing pivotal information.
Addressing these conflicting viewpoints, Arkham Intelligence CEO, Miguel Morel, advocated for a balanced view during a weekly livestream on The Defiant, emphasizing careful consideration of what information should be permitted on the platform.