Over 10,000 Bitcoin Transferred, $100M Cashed by Do Kwon During Fraud

Lavina Daryanani
Source: Bitcoin.com News

Owing to the crash of the Terra ecosystem, Do Kwon was the talk of the town in mid-2022. However, as the year progressed, and other companies fell like dominoes, the talking subjects changed. However, it seems like we’re back to square one, with the focus again on the aforementioned crypto fugitive.

A recent Bloomberg report brought to light that Do Kwon and Terraform Labs transferred over 10,000 Bitcoin out of their ill-fated project and allegedly turned some tokens into cash via a Swiss bank.

The accusations were made in a lawsuit filed by the SEC. The regulatory agency noted that the losses incurred mounted up to at least $40 billion. 

Around $100 million in fiat withdrawn

Kwon and Terraform Labs allegedly transferred ~10k Bitcoin into a cold wallet. The complaint noted that they had been periodically transferring BTC, sending the assets to a Swiss bank, and changing the tokens to cash, The SEC said,

“Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from that Swiss bank.”

However, the agency did not reveal the name of the Switzerland-based bank involved in the complaint. On Thursday, the U.S. Securities and Exchange Commission sued Terraform Labs and its co-founder Do Kwon. The agency alleged that Terraform and Kwon misled investors on a number of issues, including who was using TerraUSD for payments, and labeled both the yield-bearing Anchor Protocol and the LUNA token as “crypto asset securities.”

Resultantly, the SEC is charging Terraform and Kwon for fraud, selling unregistered securities, selling unregistered security-based swaps, and other related claims.

Read More – SEC Charges Terra Founder Do Kwon For Fraud

However, it is worth noting that Kwon’s whereabouts are still under wraps. His last known place was apparently Serbia and South Korean officials paid a visit there in the first week of February. This was done in order to garner aid from the Serbian government to track down Kwon.

Also Read – Terra: South Korean Officials Reach Serbia in Search of Do Kwon