The US Securities and Exchange Commission (SEC) filed suit against Terraform Labs and its co-founder Do Kwon for masterminding a $40 billion securities fraud involving LUNA and TerraUSD (UST) algorithmic stablecoin Terra.
Do Kwon and his company secretly processed over 10,000 BTC from the company and converted some tokens into cash through a Swiss bank. These allegations are in the same SEC lawsuit accusing Do Kwon and Terraform Labs of fraud and money laundering.
Based on the complaint, 10,000 Bitcoins were transferred to a cold wallet that was not hosted on any crypto exchange. Do Kwon has been transferring Bitcoin from a cold wallet to a bank in Switzerland since May last year. He converted Bitcoin into cash to continue his escape from South Korean authorities.
"Between June 2022 and the date of this complaint, over $100 million in fiat currency was withdrawn from the Swiss bank."
South Korean officials recently went to Serbia to get more details on Do Kwon's whereabouts. South Korean prosecutors issued an arrest warrant against Do Kwon for violating capital market laws. However, he completely denied any wrongdoing.
"We are continuing efforts to locate Kwon, and it is difficult to confirm anything related to the investigation at this stage," the prosecutor's office said on Friday.
Bitcoin price is currently trading at $23,874, down 2% after hitting a high of $25K today. Meanwhile, the price of Terra (LUNA) is trading at $1.88, down 5% in the last 24 hours.
