• Do Kwon, founder of Terraform Labs and creator of LUNA and Terra USD (UST) tokens, has been charged by the SEC with defrauding investors.
• The regulator alleges that he cashed out $100 million worth of BTC through a Swiss bank.
• He is currently on the run from authorities.
Do Kwon Charged By SEC
The United States Securities and Exchange Commission (SEC) recently announced charges against Do Kwon, founder of Terraform Labs. According to the SEC, Kwon and his company orchestrated a scheme that saw him defraud investors.
Kwon Cashed Out Millions Of BTC
As reported by Bloomberg, Kwon’s company had moved and cashed out over $100 million worth of Bitcoin using an unnamed banking provider in Switzerland. The transfers began in June 2022 as part of more than 10,000 BTC stashed in a cold wallet and periodically withdrawn through the Swiss-based bank.
SEC Alleges Fraudulent Transactions
The SEC allege the fraudulent transactions had continued up to the date of its official complaint against Do Kwon and its firm. The collapse of the then $40 billion LUNA ecosystem impacted the wider crypto market amid an intensifying crypto winter – leaving many investors with substantial losses due to this alleged fraud.
Kown Currently On The Run
Unlike Sam Bankman-Fried who was arrested swiftly following the collapse of his firms FTX and Alameda Research, Do Kwon continues to evade capture as he is still on the run from authorities.
In conclusion, Do Kwon has been charged by the SEC for allegedly defrauding investors by cashing out millions worth of Bitcoin via a Swiss bank before going on the run from authorities.