Ever since the crash of his founded once-known potential crypto project, Terra, Do Kwon has been on the radar of multiple regulators. Even though he might try to be extra careful, he is still being watched like a hawk. Earlier today, Bloomberg reported his latest illegal activity.
According to the news outlet citing the Securities and Exchange Commission (SEC). Do Kwon reportedly transferred more than 10,000 Bitcoin from his Ill-fated project and cashed it out via a Switzerland-based bank.
Do Kwon Caught Red Handed In Latest Misconduct
Notably, the latest action was in an accusation made by the SEC in a filed lawsuit for Kwon and the company, Terraform Labs Pte. The SEC noted that Kwon’s plot resulted in a loss amounting to nothing less than $40 billion. The regulator further claimed Kwon and Terraform Labs allegedly transferred 10k Bitcoin into a cold wallet.
Kwon has since been cashing out some amount of BTC via the Swiss bank periodically. The SEC stated, “Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from that Swiss bank.” The regulator has refused to disclose the name of the Switzerland-based bank involved in the complaint.
While the SEC is starting to be keener on regulating the industry than ever, it is also still looking into past illegal schemes that impacted the market negatively. On Thursday, the regulator filed a lawsuit against Terraform Labs and its co-founder Do Kwon. The charges included selling unregistered securities, unregistered security-based swaps, and other related claims.