Kwon Do-hyung, co-founder of cryptocurrency Terra and Luna issuer Terraform Labs, is reportedly depositing more than 10,000 bitcoins in a Swiss bank after cashing them. Bloomberg reported on the 17th (local time) that the U.S. Securities and Exchange Commission (SEC) has found out about this while accusing CEO Kwon of fraud.
According to the indictment, Kwon has kept 10,000 bitcoins in a cold wallet (real cryptocurrency store that is not connected to the Internet) and has regularly transferred the funds to a Swiss bank and converted them into cash since May last year. Considering that the current Bitcoin price is around $24,000, $240 million has been stolen.
The SEC also said Kwon withdrew more than $100 million from the Swiss bank in question from June last year until recently. The Swiss bank was not named.
Earlier the previous day, the SEC filed a complaint with a federal court against Kwon on charges of fraud. CEO Kwon is suspected of committing fraud worth at least $40 billion by providing and selling bearer securities and causing losses to individual and institutional investors.
According to local media reports, Kwon reportedly moved to Serbia late last year. Prosecutors in South Korea are tracking down Kwon after receiving an arrest warrant for him on charges of violating the Capital Markets Act in September last year.
CEO Kwon is a key figure in the ‘Terra and Luna crisis‘ that caused a stir in the cryptocurrency market last year. Currently, the International Criminal Police Organization (Interpol) has ordered Kwon to be sought red and is virtually being tracked around the world. Kwon is known to have moved to Serbia late last year, and the Korean government issued an arrest warrant for him in September last year for violating the Capital Markets Act.
