The US Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and its co-founder Do Kwon for orchestrating a $40 billion securities fraud involving LUNA and Terra’s algorithmic stablecoin TerraUSD (UST).
Do Kwon and his company secretly processed over 10,000 BTC from the company and converted some tokens into cash through a Swiss bank. Those allegations are in the same SEC lawsuit that accuses Do Kwon and Terraform Labs of fraud and money laundering.
According to the complaint, the 10,000 Bitcoins were transferred to a cold wallet that was not hosted on any crypto exchange. Do Kwon has been moving Bitcoin from the cold wallet to a bank in Switzerland since May last year. Converts Bitcoin to cash to continue its run by South Korean authorities.
“Between June 2022 and the date of this complaint, more than $100 million in fiat currency has been withdrawn from this Swiss bank.”
South Korean officials recently traveled to Serbia to seek more details about Do Kwon’s location. South Korean prosecutors have issued an arrest warrant against Do Kwon for violating the capital markets law. However, he has completely denied any wrongdoing.
“We are continuing efforts to locate Kwon and it is difficult to confirm anything related to the investigation at this stage,” the prosecutor’s office said Friday.
CoinGape earlier reported that Terra co-founder Do Kwon exchanged $190,000 worth of Bitcoins from Luna Foundation Guard for cash in Serbia. Prosecutors also believe he will continue to need funds to remain on the run and for daily necessities. According to CoinATMRadar, there are two cryptocurrency kiosks in Serbia’s capital, Belgrade.
Bitcoin price is currently trading at $23,874, down 2% from a high of $25,000 today. Meanwhile, Terra (LUNA) is trading at $1.88, down 5% in the last 24 hours.
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