The substantial Bitcoin transfer coincides with Terraform Labs’ wind-down process.
On-chain data reveals 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 September 2.
Although the firm has not yet publicly commented on the transfer, market analysts observe that it aligns with Terraform Labs’ ongoing wind-down process following its record settlement with the US Securities and Exchange Commission (SEC).
After the transfer, the wallet held around $2 million in various altcoins. According to Arkham Intelligence, the remaining assets primarily include Convex Finance’s CVX token, worth $986,000, and the Governance OHM (GOHM) token, valued at $790,000.
Terraform Labs’ Wind-Down
On August 27, Terraform Labs announced its plan to implement Proposal 4818, marking the final chain upgrade for the Terra blockchain. This upgrade will introduce essential changes as the firm prepares to cease operations and support for the blockchain network.
According to the company:
“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, the future of the Terra blockchain will depend on community-led initiatives, such as the Phoenix Directive.
The transition from Terraform Labs to community management could significantly impact the Terra ecosystem, as the blockchain has struggled to regain its former momentum following the collapse of its UST algorithmic stablecoin in 2022. Since then, Terra has become nearly a ghost chain, with many projects on the platform facing liquidity challenges.
In addition, Terraform Labs is 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 approximately $467 million in prejudgment interest.
Furthermore, Terraform’s co-founder and former CEO, Do Kwon, agreed to pay $110 million in disgorgement, $14.3 million in prejudgment interest, and an $80 million civil penalty.
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