More trouble for Terraform Labs as SEC finds money laundering evidence against Do Kwon
The regulatory agency has also initiated a probe into Terraform Labs’ volatile cryptocurrency Terra Luna’s (version one) rapid crash.
- Jun 10, 2022,
- Updated Jun 10, 2022 4:13 PM IST
The US Securities and Exchange Commission has got its hands on Terraform Lab’s founder Do Kwon's alleged money laundering activities, putting the company in further soup.
The agency has also initiated a probe into Terraform Labs’ volatile cryptocurrency Terra Luna’s (version one) rapid crash.
According to reports by the South Korean news agency Naver and the South Korean television network JTBC, they had earlier reported that something was fishy at Terraform Labs but no one paid attention to their concerns
The Securities and Exchange Commission of the United States has reportedly uncovered evidence of money laundering against Do Kwon. The evidence highlights 100 billion Won ($80 million) of the company's monthly operating expenses were split between many crypto wallets.
The funds were transferred a few months before the Terra ecosystem crashed.
Furthermore, Do Kwon is being investigated by the Securities and Exchange Commission (SEC) for allegedly violating the Securities Act by using a blockchain service to make it easier to buy US securities through Terra.
The adoption of TerraUSD as a stablecoin was vital to the Terra ecosystem's long-term viability and hence Terra Luna and TerraUSD were inextricably linked. If TerraUSD was deemed unstable, the value of Terra Luna would drop which is what happened after the stablecoin de-pegging fiasco.
Also Read: Crypto markets in red again; BTC at $29,000; when to expect recovery - BusinessToday
Also Read: Russia flips on crypto stance, once again! - BusinessToday
The US Securities and Exchange Commission has got its hands on Terraform Lab’s founder Do Kwon's alleged money laundering activities, putting the company in further soup.
The agency has also initiated a probe into Terraform Labs’ volatile cryptocurrency Terra Luna’s (version one) rapid crash.
According to reports by the South Korean news agency Naver and the South Korean television network JTBC, they had earlier reported that something was fishy at Terraform Labs but no one paid attention to their concerns
The Securities and Exchange Commission of the United States has reportedly uncovered evidence of money laundering against Do Kwon. The evidence highlights 100 billion Won ($80 million) of the company's monthly operating expenses were split between many crypto wallets.
The funds were transferred a few months before the Terra ecosystem crashed.
Furthermore, Do Kwon is being investigated by the Securities and Exchange Commission (SEC) for allegedly violating the Securities Act by using a blockchain service to make it easier to buy US securities through Terra.
The adoption of TerraUSD as a stablecoin was vital to the Terra ecosystem's long-term viability and hence Terra Luna and TerraUSD were inextricably linked. If TerraUSD was deemed unstable, the value of Terra Luna would drop which is what happened after the stablecoin de-pegging fiasco.
Also Read: Crypto markets in red again; BTC at $29,000; when to expect recovery - BusinessToday
Also Read: Russia flips on crypto stance, once again! - BusinessToday