• The SEC has charged Do Kwon, the founder of Terraform Labs, with defrauding investors.
• Kwon reportedly cashed out a massive $100 million worth of Bitcoin through a bank 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transfers began in June 2022 and were reportedly part of more than 10,000 BTC stashed in a cold wallet and periodically withdrawn through the Swiss-based bank.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 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.
Kwon Cashes Out Millions 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transfers began in June 2022 and were reportedly part of more than 10,000 BTC stashed in a cold wallet and periodically withdrawn through the Swiss-based bank.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.
Kwon Defrauded Investors
SEC Chair Gary Gensler said: „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.“ He added: „We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.“
Do Kwon on the Run
Do Kown is still on the run after successfully cashing out millions worth of Bitcoin from an anonymous Swiss bank account he owns. Despite numerous attempts by law enforcement authorities to apprehend him, he remains at large – creating further anxiety among crypto investors who have been affected by his actions directly or indirectly.