Do Kwon withdrew $100M worth of BTC via Swiss bank, SEC says

Do Kwon withdrew $100M worth of BTC via Swiss bank, SEC says

By Benson Toti - min read
  • Do Kwon reportedly held 10,000 BTC in a cold wallet.
  • The now fugitive Terraform Labs founder reportedly cashed out a massive $100 million worth of Bitcoin through a bank in Switzerland.
  • The SEC announced it had charged Do Kwon with defrauding investors.

The United States Securities and Exchange Commission (SEC) yesterday announced charges against Do Kwon, the founder of Terraform Labs. The regulator’s complaint is that Kwon and his company orchestrated a scheme that saw him defraud investors. 

Do Kwon is the founder of Terra, the crypto project that had a native token LUNA and stablecoin Terra USD (UST). He’s on the run and the latest news is that he cashed out massive amounts of Bitcoin (BTC) following the collapse of UST and LUNA.

SEC says Do Kwon defrauded investors

SEC charges against Do Kwon point to a plot to mislead investors, with the collapse of the then $40 billion LUNA ecosystem impacting the wider crypto market amid an intensifying crypto winter.

We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” SEC Chair Gary Gensler said in a press release on Thursday.

We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors,” he added.

Kwon cashed out millions of BTC via Swiss bank

As Bloomberg notes in a report published Thursday, 17 February, Kwon’s company had ostensibly moved and cashed out over $100 million worth of Bitcoin using an unnamed banking provider in Switzerland. 

The transfers began in June 2022 and were reportedly part of more than 10,000 BTC stashed in a cold wallet and periodically withdrawn through the Swiss-based bank.

The SEC allege the fraudulent transactions had continued up to the date of its official complaint against Do Kwon and its firm. 

Unlike Sam Bankman-Fried who was arrested swiftly following the collapse of his firms FTX and Alameda Research, Do Kwon continues to evade capture. An arrest warrant by Interpol was issued last year and the latest reports on his whereabouts suggested the South Korean citizen was in Serbia.

Terra (LUNA) and Terra Luna Classic (LUNC) price outlook

As Coinjournal reported on Friday morning, the price of Terra (LUNA) fell sharply following news the SEC had charged Kwon. 

Data from CoinGecko as of 9 am ET on Friday, also showed that the Terra Luna Classic price was 3.6% down at $0.00016773, while its market cap stood at $992 million. LUNC is a community-driven project that emerged out of the LUNA debacle.