Do Kwon took 10K Bitcoins from Terra after the collapse — Takeaways From SEC complaint


The SEC complaint also included allegations about TerraUSD’s peg and Terra’s relationship with Chai. It also claimed that Terraform Labs co-founder Do Kwon was cashing out for millions. News Collect this piece of history. The NFTA complaint by the United States Securities and Exchange Commission claimed that Terra co-founder Do Kwon and Terraform Labs had laundered more $100 million worth of Bitcoin from TerraUSD following its collapse in May 2022. It stated that Terraform Labs and TerraUSD’s Luna Foundation Guard were used to transfer more than 10,000 Bitcoin (BTC). Next, the cold wallet was used to store the Bitcoin and then transferred it to a Swiss bank account to convert to fiat. According to the financial regulator, the Terra co-founder and Terraform Labs may have had access to more cash than $100 million since June 2022 when withdrawals began. The SEC also identified the stockpile Bitcoin and said that Terra and Kwon artificially restored TerraUSD’s (UST-dollar) peg. At the time of its collapse, Terra was the largest stablecoin by market capitalization. According to the complaint, the platform solicited a third-party to purchase “massive amounts” of UST to restore its $1.00 peg. This was to deceive investors about its stability and reliability. “UST’s price falling below its $1.00 peg’ and not being quickly restored by the algorithm would spell doom to the entire Terraform ecosystem. UST and LUNA were without any reserve of assets or other backing. The SEC also claimed that several of the tokens involved with the collapse of Terra were “crypto-asset securities” under its regulatory jurisdiction. These tokens included UST and LUNA, wrapped LUNA, and MIR tokens. They also included mAssets that were developed under Terra’s Mirror Protocol. The SEC stated that defendants solicited investors to acquire these crypto assets, touting their profit potential. “Defendants repeatedly stated the value of crypto assets would rise based on Terraform’s development, maintenance and promotion of its protocols, blockchain, and the entire Terraform eco-system. The financial regulator also targeted Terra’s business connections, as the SEC reported Chai, a South Korean payment app that was linked to Terra at that time — “didn’t process or settle transactions on Terraform blockchain.” Terra allegedly reported transactions that had occurred in the real world using Korean Won, while claiming that Chai transacted via the blockchain. The SEC stated that “in at least five instances, between October 2021 & March 2022 there was one or more days when none of the transactions whatsoever were confirmed on Terraform blockchain.” “Yet there is no evidence that Chai’s payment application was not working during those times.” Do Kwon was charged by the SEC with fraud. They also accused him of lying about Terra-Chai relationships. In October, I grilled him on faking the Chai transaction data as well.Full interview here:– Laura Shin (@laurashin) February 17, 2023
Related: “Wild” — SEC pursues Terra despite many cryptocurrency users blaming him and the apparent “ripple event”, which led to multiple bankruptcies during the crypto crash of 2022, Kwan has maintained his Twitter activity despite being accused by many of them of losing funds and causing the “ripple event”. Two officials from South Korea were reportedly sent to Serbia by authorities to try to locate the Terra co-founder. Kwon’s current location was not known at the time of publication.


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