• The SEC has charged Do Kwon, founder of Terraform Labs, with defrauding investors.
• Do Kwon reportedly cashed out a massive $100 million worth of Bitcoin through a bank in Switzerland.
• The SEC alleges that Kwon and his company orchestrated a scheme to mislead investors.
SEC Charges Do Kwon with Fraud
The United States Securities and Exchange Commission (SEC) yesterday announced charges against Do Kwon, the founder of Terraform Labs. The regulator’s complaint is that Kwon and his company orchestrated a scheme that saw him defraud investors.
Do Kwon Cashed Out Over $100M Worth of BTC
As Bloomberg notes in a report published Thursday, 17 February, Kwon’s company had ostensibly moved and cashed out over $100 million worth of Bitcoin using an unnamed banking provider in Switzerland. The transfers began in June 2022 and were reportedly part of more than 10,000 BTC stashed in a cold wallet and periodically withdrawn through the Swiss-based bank.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. Unlike Sam Bankman-Fried who was arrested swiftly following the collapse of his firms FTX and Alameda Research, Do Kwon continues to evade capture. An arrest warrant has been issued for him by US authorities but it remains unclear if he will ever face justice for the alleged frauds committed under his watch at Terraform Labs.
Terra Projects Collapse Impacts Crypto Market
The collapse of the then $40 billion LUNA ecosystem impacted the wider crypto market amid an intensifying crypto winter. „We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,“ SEC Chair Gary Gensler said in a press release on Thursday. „We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors,“ he added.
Kown Remains on Run
Do kown remains on run after withdrawing millions from swiss banks .An arres warrant has been issued by US authorities but it remain unclear if he will ever face justice for alleged frauds commited under his watch at terraform labs