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Crypto fugitif do kwon and the company he founded transferred more than 10,000 bitcoin from their doomed project and turned some of the chips into cash through a Swiss bank, the securities & exchange commission said.
The allegations are in an SEC lawsuit accusing Kwon and the company, Terraform Labs Pte, of fraud over the wipeout of digital currencies he created. The second stated that at least $40 billion had been lost as a result of the scheme.
Kwon and Terraform put more than 10,000 Bitcoin into a so-called cold wallet that doesn’t sit on any digital-asset exchange, according to the complaint
They have been periodically transferring Bitcoin from the portfolio since May of last year, sending assets to a Swiss bank and converting tokens into cash, the SEC said. It did not identify the FI.
"between June 2022 and the date of this complaint, more than 100 million dollars in cash was withdrawn from this Swiss bank," the agency claimed on Thursday.
Kwon developed stablecoin terrausd, which was supposed to have a constant value of $1 through a mixture of algorithms and incentives for traders involving a sister token, luna. The building exploded in May 2022, exacerbating a $2 trillion boondoggle in crypto markets and contributing to the demise of a range of digital equipment.
Kwon's whereabouts became vague after South Korea issued an arrest warrant against him for alleged violations of the Financial Markets Act. The Asian nation said kwon is also the subject of a red notice by interpol.
South Korean officials visited Serbia earlier this year to ask for help in the kwon hunt after the Balkan nation emerged as a potential site for it.
Our efforts to locate Kwon remain ongoing, and it's hard to confirm anything related to the investigation at this point," the prosecutor's office in Seoul said in an SMS on Friday.
Neither the 31-year-old contractor nor the terraformal laboratories responded to requests for input into the trial. Kwon's already denied a reprehensible act.
For crypto market prices: CRYP; for top crypto news: TOP CRYPTO.
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— With assistance by Hooyeon Kim and Joanna Ossinger
