SEC claims Do Kwon moved 10,000 Bitcoin (BTC) when the Terra (LUNA) ecosystem imploded last year
The US Securities and Exchange Commission (SEC) has claimed that Terra founder Do Kwon transferred 10,000 Bitcoin (BTC), currently worth about a quarter billion dollars, when the LUNA ecosystem collapsed in May last year.
In a complaint from the SEC, the regulator says that Kwon took BTC from Terraform Labs and the Luna Foundation Guard (LFG) and transferred it to a Swiss bank account.
The SEC claims that over $100 million worth of BTC has been converted to cash since June of last year.
“Defendants still retain valuable proceeds from the terraform ecosystem. Specifically, the defendants transferred over 10,000 Bitcoin from crypto asset platform Terraform and Luna Foundation Guard accounts to an unhosted wallet or cold wallet (i.e., a self-custody wallet not located on an exchange).
Since May 2022, Terraform and Kwon have regularly transferred – and continue to transfer – bitcoin from this wallet to a financial institution based in Switzerland, converting the bitcoin into cash.
Between June 2022 and the date of this complaint, over $100 million in fiat currency was withdrawn from this Swiss account.”
The SEC last week officially accused Kwon of defrauding investors regarding LUNA and Terra USD (UST).
As SEC Chairman Gary Gensler said,
“We allege that Terraform and Do Kwon have failed to provide the public with the full, fair and truthful disclosure required of a variety of crypto-asset securities, most notably LUNA and Terra USD. We also allege that they committed fraud by repeating false and misleading statements to build trust before inflicting devastating losses on investors…
This case shows how far some crypto firms will go to avoid compliance with securities laws, but it also shows the strength and commitment of the SEC’s dedicated officials.”
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