Do Kwon, the founder of Terra, has recently battled a slew of problems, ranging from the UST and LUNA plunging in value to claims that the founder was involved in illegal activities while overseeing the network.
Following the recent collapse of the Terra network, different governments have shone their searchlights on the blockchain and its founding team. The United States Securities and Exchange Commission has become interested in Do Kwon and his activities.
According to reports, Do Kwon has recently been under the scrutiny of the SEC regarding his alleged money laundering activities. As part of their investigation, they want to analyze the reasons behind the downfall of Terra and its native token and algorithmic stablecoin.
According to reports, Do Kwon has recently been under SEC investigation for alleged money laundering activities.
As part of their investigation, they aim to look into the reasons for Terra’s collapse and the decline of its native token and algorithmic stablecoin.
This was brought to the notice of the public by Watcher Guru, which they added in a Twitter post.
“BREAKING: Terra employees reportedly confirmed to the SEC that Do Kwon cashed out $80 million a month prior to the $LUNA and $UST crash.”
Naver, a South Korean news agency, quoted that.
“The US Securities and Exchange Commission recently conducted a remote video survey of some of Terra’s key designers and focused on inquiring about Terra’s poor design structure.”
According to reports, the US Securities and Exchange Commission has uncovered instances in which up to $80 million of Terra’s funds were transferred to multiple wallet addresses monthly for alleged operational expenses.
This happened a few months before the network took a nosedive. The frequent movement of such large sums drew the US SEC’s attention to the possibility of money laundering.
The US Securities and Exchange Commission is investigating Terra’s founder for violations of the Securities Act, and if found guilty, he may face legal action in the US.
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