Arkham Intel Exchange Has Its First Approval on Wallets Belonging to Terra and Do Kwon

UTC by Bhushan Akolkar · 2 min read
Arkham Intel Exchange Has Its First Approval on Wallets Belonging to Terra and Do Kwon
Photo: Unsplash

The submission by two “on-chain sleuths” includes evidence of wallets owned by Kwon and Terra.

On Monday, July 24, Arkham Intel Exchange, a platform aimed at “deanonymizing the blockchain”, accepted the first submission for information on wallet addresses linked to Terraform Labs and its co-founder Do Kwon.

In a recent announcement on July 24, Arkham Intel Exchange disclosed that it received a submission from two “on-chain sleuths”. As a result, the platform rewarded them with a bounty payment of 9,519.2625 Arkham (ARKM), which is approximately $5,000 as per the current value. The announcement reads:

“The Arkham Intel Exchange now has its first approved submission: new evidence of wallets owned by Do Kwon / Terraform Labs. An anonymous on-chain sleuth and @ErgoBTC were the successful bounty hunters.”

The submission included evidence of wallets owned by Kwon and Terra. Ergo, one of the sleuths associated with OXT Research, stated that this information could potentially contradict public statements from Terra about holding only one Luna Foundation Guard wallet, which has 313 Bitcoins as reserves.

Introduced earlier this month on July 10, Arkham received criticism from various members of the crypto community, who view it as nothing more than a glorified snitching service. The company enables users to offer bounties for information on blockchain transactions. These bounties later go public 90 days after approval on Arkham. As a result, any information regarding the Kwon and Terra wallet addresses may be accessible around late October.

Developments in Terra Case

Terra faced significant controversy during the 2022 crypto market crash when its algorithmic stablecoin, TerraClassicUSD (USTC), deviated from its peg to the US dollar. Kwon’s whereabouts remained unknown from May 2022 until March 2023 when he was arrested and later sentenced to four months in prison in Montenegro for using forged travel documents.

In South Korea, individuals connected to Terra are currently under investigation by local authorities regarding the exchange. Co-founder Shin Hyun-seong, also known as Daniel Shin, reportedly had his first hearing in July for charges related to allegedly making illicit profits from the sale of LUNA tokens.

According to allegations, Daniel Shin, a co-founder of Terraform Labs alongside Do Kwon, reportedly sold approximately $118 million worth of LUNA tokens before the token’s crash in May 2022. Shin faces accusations of employing similar strategies to profit from investor funds at Chai Corporation, a fintech company he founded after leaving Terraform Labs.

Shin’s defense has denied that he “sold Luna at a high point and realized profits or that he made profits through other illegal methods”.

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