The US Securities and Exchange Commission (SEC) accuses Do Kwon of laundering 10,000 Bitcoins after Terra’s collapse.
One of the events that marked the crypto industry in 2022 was the collapse of TerraUSD. After the collapse, Do Kwon, who was wanted around the world, was sued by the SEC.
Do Kwon Accused of Laundering Nearly $100 Million
The U.S. Securities and Exchange Commission (SEC) stated that more than $100 million in Bitcoin was laundered from the platform following its collapse in the accusation against Terraform Labs and Do Kwon.
According to the accusation filed by the SEC, Do Kwon and Terraform Labs transferred 10,000 Bitcoins from the platform and the Luna Foundation Guard to their cold wallets. The SEC then said the funds were transferred to a bank account of Swedish origin to be converted into fiat currency. The SEC said Kwon and his company may have access to more than $100 million in cash since withdrawals began in June 2022.
Apart from identifying the stock of Bitcoin, the SEC agrees that Kwon and Terra have only ostensibly corrected their dollar-pegged stablecoin, TerraUSD.
The SEC also considers that many of the tokens involved in Terra’s collapse are securities. According to the SEC, these assets include UST, LUNA and wLUNA, as well as MIR tokens and mAssets developed under Terra’s “Mirror Protocol”.
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