TechFlow news — The U.S. Securities and Exchange Commission (SEC) said Do Kwon and his company transferred over 10,000 bitcoins from the project and converted some of the tokens into cash through a Swiss bank.
According to the indictment, Kwon and Terraform Labs stored more than 10,000 bitcoins in a cold wallet. Since May last year, they periodically transferred bitcoins from the wallet, sending assets to a Swiss bank (the specific financial institution was not named), and converting the tokens into cash. "From June 2022 to the date of this indictment, over $100 million in fiat currency was withdrawn from this Swiss bank."
As previously reported, the U.S. Securities and Exchange Commission (SEC) announced it had filed a lawsuit in the U.S. District Court for the Southern District of New York, accusing Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon of orchestrating a multi-billion-dollar crypto asset securities fraud involving algorithmic stablecoins and other crypto asset securities, violating registration and anti-fraud provisions of the Securities Act and the Exchange Act.
According to the SEC's allegations, from April 2018 until the scheme collapsed in May 2022, Terraform and Do Kwon raised billions of dollars from investors by issuing and selling a suite of interconnected crypto asset securities, many of which were conducted in unregistered transactions, including securities-based swap instruments called mAssets and the crypto security known as the algorithmic stablecoin Terra USD (UST). In addition, the SEC alleges that Terraform and Kwon offered and sold other investments to investors, including the crypto asset security Token MIR (or Mirror Token) and LUNA itself. Terraform and Kwon marketed these crypto asset securities to investors and repeatedly claimed these tokens would appreciate in value.Original link
