As per data allegedly shared by SEC, Do Kwon cashed out over $80 million in Terra’s crypto on monthly basis before whole thing collapsed
According to a report by FXStreet, the founder of Terra Do Kwon took care of his own well-being before LUNA and UST collapsed by moving $80 million of these coins into his wallets and cashing them out.
FXStreet cites staffers of the SEC, who preferred to stay unnamed, as the source of this compromising data.
The SEC investigates Terra and Do Kwon
Terra and its founder Do Kwon are currently under investigation by the US SEC as they suspect Kwon of money laundering. Now the SEC is investigating the collapse of LUNA and UST.
According to South Korean news agency Naver and JTBC, the SEC has recently conducted some remote video surveillance of several top designers of Terra and chose to focus on the poor design structure of Terra blockchain.
Did Do Kwon steal Terra’s funds?
According to the same news source, the SEC reported that more than $80 million of LUNA (now renamed LUNC) and UST were withdrawn from the company’s funds on a monthly basis and sent to various wallets, which apparently belonged to Do Kown, to cover running costs.
According to the SEC, the Terra chief began withdrawing these funds several months before the crash of Terra’s tokens. Therefore, the regulatory agency found this suspicious and related to money laundering.
According to an unnamed high-ranking Terra employee, Kwon did not receive any official payment from Terra.
At present, Kwon is suspected of violating the Securities Act as the SEC reckons he could possibly buy U.S. securities using Terra’s crypto. Should these suspicions be true, Do Kwon would be in for legal action in the U.S.
Crypto Twitter Reaction
Crypto Twitter showed a somewhat neutral reaction to the Terra founder stealing it just before the collapse. However, some people were outraged.
Crypto analyst Michael van de Poppe tweeted that he believes Kwon deserves to go to prison for getting away with a lot of money when LUNA investors were losing tons of cash. He also compared Kwon to infamous American fraudster Bernie Madoff, who ws imprisoned, insisiting that the same must happen to Do Kwon.
