{"id":553350,"date":"2023-02-18T00:30:00","date_gmt":"2023-02-17T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/do-kwon-removed-10k-bitcoin-from-terra-after-collapse-takeaways-from-sec-complaint\/"},"modified":"2023-02-18T00:30:00","modified_gmt":"2023-02-17T21:30:00","slug":"do-kwon-removed-10k-bitcoin-from-terra-after-collapse-takeaways-from-sec-complaint","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/do-kwon-removed-10k-bitcoin-from-terra-after-collapse-takeaways-from-sec-complaint\/","title":{"rendered":"# Do Kwon removed 10K Bitcoin from Terra after collapse \u2014 Takeaways from SEC complaint"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26ea2475c68\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26ea2475c68\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/do-kwon-removed-10k-bitcoin-from-terra-after-collapse-takeaways-from-sec-complaint\/#%E2%80%9D_Do_Kwon_removed_10K_Bitcoin_from_Terra_after_collapse_%E2%80%94_Takeaways_from_SEC_complaint_%E2%80%9C\" >&#8221; Do Kwon removed 10K Bitcoin from Terra after collapse \u2014 Takeaways from SEC complaint &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Do_Kwon_removed_10K_Bitcoin_from_Terra_after_collapse_%E2%80%94_Takeaways_from_SEC_complaint_%E2%80%9C\"><\/span>&#8221; Do Kwon removed 10K Bitcoin from Terra after collapse \u2014 Takeaways from SEC complaint &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvODIyYTc4ZWItYzFmNi00YjdhLTkyYTItMzg0NGNkMmU4N2VhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>A complaint filed by the United States Securities and Exchange Commission said Terra co-founder Do Kwon and Terraform Labs laundered more than $100 million worth of Bitcoin from the platform following its collapse in May 2022.<\/p>\n<p>According to the SEC complaint <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/litigation\/complaints\/2023\/comp-pr2023-32.pdf\">filed<\/a> in the U.S. District Court for the Southern District of New York on Feb. 16, Kwon and Terraform have transferred more than 10,000 Bitcoin (BTC) from the platform and the Luna Foundation Guard to a cold wallet, then to a Swiss bank account to convert to fiat. The financial regulator said that the Terra co-founder and his company might have access to more than $100 million in cash since withdrawals started in June 2022. <\/p>\n<p>In addition to identifying the stockpile of Bitcoin, the SEC said Kwon and Terra artificially restored TerraUSD\u2019s (UST) dollar peg \u2014 the stablecoin had been one of the largest by market capitalization at the time the platform collapsed. According to the complaint, the platform solicited a third party to purchase \u201cmassive amounts of UST to restore the $1.00 peg\u201d when it dropped below $1 in May 2021, misleading investors as to its stability and reliability:<\/p>\n<blockquote><p>\u201cUST\u2019s price falling below its $1.00 \u2018peg\u2019 and not quickly being restored by the algorithm would spell doom for the entire Terraform ecosystem, given that UST and LUNA had no reserve of assets or any other backing.\u201d<\/p><\/blockquote>\n<p>The SEC also claimed several of the tokens involved in the collapse of Terra were \u201ccrypto asset securities\u201d falling under its regulatory purview. According to the SEC, these tokens included UST, LUNA and wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed LUNA, as well as MIR tokens and mAssets developed under Terra\u2019s Mirror Protocol.<\/p>\n<p>\u201cDefendants solicited investors for these crypto assets by touting their profit potential,\u201d said the SEC. \u201cDefendants repeatedly stated that the crypto assets would increase in value based on Terraform\u2019s development, maintenance, and promotion of its blockchain, protocols, and the entire Terraform ecosystem.\u201d<\/p>\n<p>Terra\u2019s business connections were also a target of the financial regulator, as the SEC reported Chai \u2014 a South Korean payment app linked to Terra at the time \u2014 \u201cdid not process or settle transactions on the Terraform blockchain.\u201d Rather, Terra allegedly reported transactions \u201cthat had already happened in the real world using Korean Won\u201d while claiming to the public that Chai transacted on the blockchain.<\/p>\n<p>\u201cIn at least five instances between October 2021 and March 2022, there were one or more days when no transactions whatsoever were confirmed on the Terraform blockchain,\u201d said the SEC. \u201cYet, there is no evidence that the Chai payment application was not functioning during those periods.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The SEC has charged Do Kwon with fraud &#8211; and their charges include how he lied about the Terra-Chai relationship. <\/p>\n<p>In October, I grilled him on faking the Chai transaction data as well.<\/p>\n<p>Full interview here: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/xZyRGFBYnh\">https:\/\/t.co\/xZyRGFBYnh<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/iQ4XT8q7X7\">pic.twitter.com\/iQ4XT8q7X7<\/a><\/p>\n<p>\u2014 Laura Shin (@laurashin) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/laurashin\/status\/1626663546737025028?ref_src=twsrc%5Etfw\">February 17, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>\u2018Wild\u2019 \u2014 SEC going after Terra sparks responses from crypto lawyers<\/em><\/strong><\/p>\n<p>Kwon has continued to be active on his <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> account following the collapse of Terra despite many crypto users blaming him for their loss of funds and the seeming \u201cripple event\u201d leading to multiple bankruptcies amid the crypto crash of 2022. South Korean authorities reportedly sent two officials to Serbia in an attempt to track down the Terra co-founder. At the time of publication, Kwon\u2019s location i unknown.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/do-kwon-removed-10k-bitcoin-from-terra-after-collapse-takeaways-from-sec-complaint\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Do Kwon removed 10K Bitcoin from Terra after collapse \u2014 Takeaways from SEC complaint &#8220; A complaint filed by the United States Securities and Exchange Commission said Terra co-founder Do Kwon and Terraform Labs laundered more than $100 million worth of Bitcoin from the platform following its collapse in May 2022. According to the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":553351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/822a78eb-c1f6-4b7a-92a2-3844cd2e87ea.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74932,74898,122378,70934],"class_list":["post-553350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-crimes","tag-sec","tag-terra","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/553350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=553350"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/553350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/553351"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=553350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=553350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=553350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}