South Korean police are conducting a separate investigation into the embezzlement of Terra (LUNA). In the midst of this investigation into the altcoin project, a new investigation is imminent. The Seoul Metropolitan Police Department arrested a Terraform Labs employee on Tuesday for stealing 80 Bitcoins.
SEC shock investigation on money laundering
South Korean news portal Naver has prepared a report on Terra. Accordingly, the SEC has seized Terra’s money laundering status. This adds to the ongoing SEC investigation into the allegations surrounding Terra and Luna’s collapse. The report highlights:
The US Securities and Exchange Commission recently conducted a remote video survey of some of Terra’s key designers. It also focused on questioning Terra’s poor design nature. The designers had previously predicted the collapse of Terra and Luna. They have pointed out several times the unseen danger for CEO Do Kwon.
Meanwhile, there has been a shocking revelation. The SEC found that approximately 100 billion won of corporate funds are embezzled each month. He allegedly found that the funds had been sent for operating expenses a few months before the Terra collapse. According to the report, this plan is believed to be Do Kwon’s money laundering scheme. As Kriptokoin.com, we continue to convey the developments regarding the altcoin project to our readers.
SEC obtained proof of money laundering in altcoin project!
Additionally, the US regulator found internal evidence that funds were transferred to “dozens of cryptocurrency wallets.” However, it is stated that Do Kwon did not receive as much money as his personal capacity. In a separate Terra investigation, an employee of the company was found to have stolen approximately $2.39 million worth of Bitcoin. The theft is believed to have been committed during the collapse of Terra last month.
Meanwhile, news of this investigation had a huge negative impact on Terra’s price. Terra is trading at $2.69, down 23.66% in the last 24 hours, according to CoinMarketCap. Repeated investigations and doubts about the project after the massive loss in investor confidence could drive the Terra price down further.
On the other hand, an employee of Terra, nicknamed FatMan, makes similar allegations against Do Kwon. FatMan also commented on this development. He said this confirms information he had previously leaked through his sources.
SEC investigates $60 billion Terra explosion
Terraform Labs is unaware of an investigation into Terra’s LUNA cryptocurrency. On Wednesday, Terra co-founder Do Kwon lost an appeal to block the agency’s subpoenas due to another ongoing investigation into Mirror Protocol. Do Kwon was served by the SEC while in the middle of a cryptocurrency conference last November.
The SEC was investigating whether the Mirror Protocol violated securities laws. The Mirror Protocol allegedly allows the issuance of synthetic assets representing the stocks of large corporations. Do Kwon refused to accept the subpoena and decided to sue the SEC. It also argues that since Terraform Labs was founded in South Korea, the agency’s jurisdiction has been limited.
However, the Second Circuit Court of Appeals ruled that the SEC’s subpoenas were valid. Therefore, Terraform Labs has to cooperate with the editor. Meanwhile, Terraform Labs co-founder Daniel Shin claimed that the company never intended to defraud users. Accordingly, Shin denied the increasing accusations of fraud.
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