Key Terra employees interviewed by the US SEC have revealed a potential money laundering scheme run by Do Kwon.
Since the collapse of Terra Luna and UST and the subsequent launch of Terra 2.0, all eyes have been on Do Kwon and his team at Terraform Labs. Numerous allegations have been leveled against the founder and TFL, with some carrying strong evidence. Even the South Korean authorities have launched an investigation into TFL and Do Kwon.
Now, the US SEC is getting involved. According to information revealed by Naver, Do Kwon knew that Terra was about to go down months prior. Apparently, within those months, Kwon cashed out lots of money from company funds.
$80 Million A Month
Apparently, Do Kwon was very keen to cash out as many funds as possible before Terra Luna went down. The interviewed employees have confirmed to the SEC that Do Kwon transferred funds to the tune of $80 million a month from company funds to secret crypto wallets and foreign bank accounts. Basically, this is akin to money laundering, and US authorities don’t like that.
If these charges are proven with enough evidence, Do Kwon and TFL could find themselves in more trouble than they are right now. The two entities are already facing tax evasion charges in South Korea, with the taxman demanding around $78 million in tax settlement and fines.
They Predicted The Collapse Of Terra
Further reports from South Korean media reveal that Do Kwon and TFL were aware that Terra was heading for the brick wall months prior to the Luna and UST collapse.
The mentioned employees, who have been interviewed remotely, have confirmed that they warned Kwon about the potential looming danger pertaining to the design flaws of the Terra ecosystem, but Kwon ignored the warnings and went on with his money laundering racket.
Yesterday Terra Anchor Developer confirmed Do Kwon Deliberately Raised Interest From 3.6% to 20% A Week Before Launch making UST crash.
“Just before the launch, I suggested to CEO Kwon that the interest rate should be lowered, but it was not accepted,”
Today, a US Court ordered Terra’s Do Kwon and Terraform Labs to comply with the subpoenas issued by the SEC.