Arkham Intel Exchange approved Terra and Do Kwon wallets.

Arkham Intel Exchange approved Terra and Do Kwon wallets.

The Blockchain Industry Upsurge in Deanonymization Efforts

On Monday, July 24, Arkham Intel Exchange, a groundbreaking platform aimed at “deanonymizing the blockchain,” made an intriguing announcement. The platform proudly accepted its first-ever submission, providing crucial information on wallet addresses linked to Terraform Labs and its co-founder, Do Kwon1.

The submission was made by two dedicated “on-chain sleuths” who thoroughly investigated the matter. As a token of appreciation, Arkham Intel Exchange rewarded them with a generous bounty payment of 9,519.2625 Arkham (ARKM), equivalent to approximately $5,000 according to the current market value2. This exciting development signifies Arkham’s emergence as a powerful tool within the blockchain industry.

Insights into the Submission and Potential Contradictions

The approved submission contained undeniable evidence of wallets owned by Do Kwon and Terra. One of the sleuths involved, Ergo, passionately associated with OXT Research, suggests that this revelation could potentially challenge Terra’s public statements about holding only one Luna Foundation Guard wallet, backed by 313 Bitcoins3. This compelling information intensifies the ongoing discussions surrounding the actions and holdings of Terra and its associates.

The Controversial Genesis of Arkham and its Critics

Arkham Intel Exchange entered the blockchain scene earlier this month, on July 10, and immediately sparked heated debates within the crypto community. Some enthusiasts view Arkham as nothing more than a glorified snitching service. However, this groundbreaking platform empowers users to offer bounties for information regarding blockchain transactions4. This methodology ensures that information about Kwon and Terra’s wallet addresses will go public approximately 90 days after its approval on Arkham. Consequently, this valuable information might become accessible in late October5.

The Ongoing Terra Controversy

Terra, marked by significant controversy during the 2022 crypto market crash period, experienced a destabilization of its algorithmic stablecoin, TerraClassicUSD (USTC), which deviated from its US dollar peg. Additionally, Do Kwon’s whereabouts remained unknown from May 2022 until March 2023 when he was arrested and subsequently sentenced to four months in prison in Montenegro due to the use of forged travel documents6.

Meanwhile, investigations by local authorities are currently underway in South Korea concerning individuals connected to Terra and its operations. Co-founder Shin Hyun-seong, also known as Daniel Shin, had his first court hearing in July, facing charges related to allegedly making illicit profits from the sale of LUNA tokens7.

According to allegations, Shin reportedly sold approximately $118 million worth of LUNA tokens before the token’s crash in May 2022. These allegations also imply that Shin might have employed similar strategies to profit unlawfully from investor funds at Chai Corporation, a fintech company he founded after leaving Terraform Labs8. Naturally, these accusations against Shin have an enormous impact on the perception of Terra and its co-founders.

In defense, Shin has vehemently denied selling Luna at a high point, realizing profits, or employing any illicit methods to gain financial advantages9. The court proceedings will ultimately determine the validity of these accusations and the repercussions they might have on Terra and its co-founders’ future.

Overall, the Arkham Intel Exchange’s involvement in deanonymizing the blockchain poses significant implications for the blockchain industry. Providing a platform for bounty hunters to bring forth crucial information about wallet addresses challenges the notion of anonymity in the digital realm. As the blockchain industry continues to evolve, initiatives like Arkham Intel Exchange contribute to creating a more transparent and accountable ecosystem, paving the way for a future where blockchain’s potential can be fully realized.

  1. Source:↩︎

  2. Source:↩︎

  3. Source:↩︎

  4. Source:↩︎

  5. Source:↩︎

  6. Source:↩︎

  7. Source:↩︎

  8. Source:↩︎

  9. Source:↩︎