Luna cryptocurrency founder transferred $ 80 million to secret wallets every month until the coin’s collapse

New stories about Do Kwon's fraud seem to never end. According to the US Securities and Exchange Commission (SEC), facts confirming money laundering by Terra’s founder have become known and law enforcement agencies have launched an investigation.

The SEC found that a few months before Terra’s collapse, Do Kwon began transferring $ 80 million (100 billion won) to different wallets every 30 days. It was the revelation of such activity that raised suspicions of money laundering. This was reported on Twitter by the crypto news platform Watcher Guru.

BREAKING: Terra employees reportedly confirmed to the SEC that Do Kwon cashed out $ 80 million a month prior to the $LUNA and $UST crash.

— Watcher. Guru (@WatcherGuru) June 9, 2022

According to the SEC, the funds were transferred to dozens of cryptocurrency wallets, and Do Kwon himself never received official payments from his company.

If the SEC’s allegations are found to be true, Do Kwon will be brought to trial in the United States. For now, Kwon remains «innocent until proven guilty in a court of law.» However, the SEC still had something to testify to yesterday — the US federal court upheld the decision of the previous instance regarding the requirement to appear for hearings on asset transactions — last spring, Kwon ignored the requirement to appear.

Recently, one of Terra’s principal developers stated that he had warned Do Kwon about the volatile 20% rate. The protocol was originally designed for an interest rate of 3.6%, but a week before the launch, it was increased to 20%. In this way, the team hoped to attract more investors, but, as the developer says, it was a path to failure.