Terra Founder Do Kwon Sells 10,000 Bitcoin Through Swiss Bank1 min read
The U.S. Securities and Exchange Commission (SEC) has taken against legal actionTerraform Labs and its co-founder, Do Kwon, for allegedly orchestrating a securities fraud worth $40 billion involving LUNA and TerraUSD (UST), Terra’s algorithmic stablecoin.
As part of these allegations, Do Kwon is accused of secretly moving over 10,000 BTC out of the company and converting some of the tokens into cash through a Swiss bank.
The SEC lawsuit also accuses Do Kwon and Terraform Labs of fraud and money laundering. The complaint notes that the 10,000 Bitcoin was transferred to a cold wallet un-hosted on any crypto exchange. Do Kwon has allegedly continued to transfer Bitcoin from the cold wallet to a bank in Switzerland since May 2022, converting it to cash to evade South Korean authorities.
“Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from that Swiss bank.”
South Korean officials recently traveled to Serbia to investigate Do Kwon’s whereabouts, as prosecutors issued an arrest warrant against him for violating capital markets laws. However, Do Kwon has denied any wrongdoing.
According to CoinGape, Do Kwon previously exchanged Bitcoin worth $190,000 for cash in Serbia, and prosecutors believe he will continue to require funds to remain on the run and meet his daily needs. Serbia’s capital, Belgrade, is home to two cryptocurrency kiosks, according to CoinATMRadar.