SEC Alleges Do Kwon Moved 10,000 Bitcoin (BTC) As Terra (LUNA) Ecosystem Imploded Last Year
The US Securities and Exchange Commission (SEC) has alleged that Terra founder Do Kwon transferred 10,000 Bitcoin (BTC), currently worth about a quarter of a billion dollars, when the LUNA ecosystem collapsed last May.
In an SEC complaint, the regulator says Kwon took BTC out of Terraform Labs and Luna Foundation Guard (LFG) and transferred it to a Swiss bank account.
The SEC claims that so far over $100 million BTC has been converted to cash since last June.
“Defendant still retains valuable earnings from the Terraform ecosystem. In particular, Defendant transferred over 10,000 Bitcoins from Terraform and Luna Foundation Guard’s crypto-asset platform accounts to a non-hosted wallet, or cold wallet (ie, a self-custodial wallet that is not on any exchange).
On a periodic basis since May 2022, Terraform and Kwon have transferred – and continue to transfer – Bitcoin from this wallet to a financial institution based in Switzerland and have converted Bitcoin into cash.
Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from the Swiss account.”
The SEC officially charged Kwon with defrauding investors in relation to LUNA and Terra USD (UST) last week.
As stated by SEC Chairman Gary Gensler,
“We allege that Terraform and Do Kwon failed to provide the public with full, fair and truthful disclosure required for a number of crypto-asset securities, particularly for LUNA and Terra USD. We also allege that they committed fraud by repeating false and misleading statements in order to build confidence before causing devastating losses to investors…
This case shows the lengths to which some crypto firms will go to avoid compliance with securities laws, but it also demonstrates the strength and dedication of the SEC’s dedicated public servants.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/petrov-k/WindAwake
