The US SEC claims that Do Kwon and Terraform Labs covertly handled more than 10,000 BTC and are still exchanging Bitcoin for cash through a Swiss bank.
Terraform Labs and its co-founder Do Kwon are being sued by the U.S. Securities and Exchange Commission (SEC) for organizing a $40 billion securities scam utilizing LUNA and Terra's algorithmic stablecoin TerraUSD (UST).
Around 10,000 BTC were surreptitiously transferred out of the business by Do Kwon and his firm, and some tokens were changed into cash via a Swiss bank. The same SEC action that charges Do Kwon and Terraform Labs with fraud and money laundering also makes these accusations against them.
The 10,000 Bitcoin were allegedly sent to a cold wallet that wasn't hosted on any cryptocurrency exchange, according to the lawsuit. Since May of last year, Do Kwon has kept sending Bitcoin from the cold wallet to a Swiss bank. In order to continue fleeing the South Korean government, which he is changing Bitcoin into cash.
“Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from that Swiss bank.”
Officials from South Korea recently visited Serbia to learn more about Do Kwon's whereabouts. Do Kwon was the subject of an arrest order from South Korean prosecutors for breaking the capital markets legislation. He has, however, categorically denied any wrongdoing.
The prosecutor's office stated on Friday that “we are continuing efforts to locate Kwon, and it’s difficult to confirm anything related to the investigation at this stage.”
In Serbia, Do Kwon converted bitcoin worth $190K from the Luna Foundation Guard into cash. Also, according to the prosecution, he will want money to support himself while he is on the run and for other necessities. There are two cryptocurrency kiosks in Belgrade, the capital of Serbia, according to CoinATMRadar.
