Terraform Labs moves $62.81M in BTC amid final wind-down steps Terraform Labs moves $62.81M in BTC amid final wind-down steps
The significant Bitcoin transfer aligns with Terraform Labs' winding down process.
2 min read
Updated: Sep. 3, 2024 at 7:42 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
On-chain data shows that a crypto wallet linked to the bankrupt Terraform Labs moved 1,075 BTC, valued at approximately $62.81 million, to a new address (bc1q5) on Sept. 2.
While the firm has yet to comment publicly on the transfer, market analysts note that it aligns with Terraform Labs’ plan to wind down operations following its record settlement with the US Securities and Exchange Commission (SEC).
After the transfer, Terraform Labs had around $2 million in various altcoins left in the wallet. According to Arkham Intelligence, the wallet holdings mainly include Convex Finance’s CVX token, worth $986,000, and the Governance OHM (GOHM) token, valued at $790,000.
Terraform Labs’ winding down
On Aug. 27, bankrupt Terraform Labs announced its plan to initiate Proposal 4818, marking the final chain upgrade for the Terra blockchain. This upgrade will implement crucial changes as the firm prepares to end its operations and support the blockchain network.
According to the firm:
“As TFL begins winding down its operations, Proposal 4818 will be the final chain upgrade that we implement. Pursuant to TFL’s settlement with the SEC and implementation of its proposed chapter 11 plan, TFL will no longer have the ability to support future chain upgrades.”
Going forward, Terra blockchain’s future will hinge on community-led initiatives, such as the Phoenix Directive.
Meanwhile, the transition from Terraform Labs to community management could significantly affect the Terra ecosystem because the blockchain network has struggled to reach previous heights following the shock collapse of its UST algorithmic stablecoin in 2022. Since then, Terra has become almost a ghost chain, with several projects on the platform struggling for liquidity.
Moreover, Terraform Labs is also selling other assets, including platforms like Pulsar Finance and Station, to meet financial obligations related to its settlement with the US regulator.
Terraform Labs agreed to a $4.5 billion settlement with the SEC in May, including nearly $3.6 billion in disgorgement, a $420 million civil penalty, and about $467 million in prejudgment interest.
In addition, Terraform’s co-founder and former CEO, Do Kwon, also agreed to pay $110 million in disgorgement, $14.3 million in prejudgment interest, and an $80 million civil penalty.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Terra Classic
$0.00011
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Convex Finance
$2.40374
Convex Finance is a platform built to boost rewards for CRV stakers and liquidity providers alike, all in a simple and easy to use interface.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.