The Crypto Fugitive and the Swiss Bank Heist: How Do Kwon Transferred Over 10,000 Bitcoin and Wiped Out Digital Currencies

Do Kwon, the co-founder of Terraform Labs Pte, has been accused of fraud by the Securities & Exchange Commission (SEC) over the wipeout of digital currencies he created.

The allegations are based on the transfer of over 10,000 Bitcoin out of their doomed project and turning some of the tokens into cash via a Swiss bank. According to the SEC, this scheme led to losses of at least $40 billion.

Investors King understands that Kwon and Terraform Labs allegedly transferred the Bitcoin into a cold wallet, periodically sending the assets to a Swiss bank and changing the tokens to cash.

The SEC stated, “Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from that Swiss bank.” However, the name of the Switzerland-based bank involved in the complaint was not revealed.

The SEC has sued Terraform Labs and Kwon for fraud, selling unregistered securities, selling unregistered security-based swaps, and other related claims. The agency alleges that Terraform and Kwon misled investors on a number of issues, including who was using TerraUSD for payments, and labeled both the yield-bearing Anchor Protocol and the LUNA token as “crypto asset securities.”

Despite the allegations, Kwon’s whereabouts remain unknown. His last known location was Serbia, and South Korean officials have paid a visit there to garner aid from the Serbian government to track him down.

The wipeout of digital currencies and the transfer of over 10,000 Bitcoin highlights the risks associated with cryptocurrency investments.

The lack of regulation and oversight in the cryptocurrency market can leave investors vulnerable to fraud and financial losses.

It is important for investors to thoroughly research any cryptocurrency project and its founders before investing.