Do Kwon Withdraws $100M Worth of BTC: SEC Charges Fraud

• Do Kwon, founder of Terraform Labs, has been charged by the SEC for defrauding investors
• The SEC alleges that Kwon cashed out a massive $100 million worth of Bitcoin through a Swiss bank
• Kwon is currently on the run from authorities

Do Kwon Charged with Fraud

The United States Securities and Exchange Commission (SEC) yesterday announced charges against Do Kwon, the founder of Terraform Labs. The regulator’s complaint is that Kwon and his company orchestrated a scheme that saw him defraud investors.

$100 Million Worth of BTC Cashed Out

As Bloomberg notes in a report published Thursday, 17 February, Kwon’s company had ostensibly moved and cashed out over $100 million worth of Bitcoin using an unnamed banking provider in Switzerland. The transfers began in June 2022 and were reportedly part of more than 10,000 BTC stashed in a cold wallet and periodically withdrawn through the Swiss-based bank.

SEC Allegations

SEC charges against Do Kwon point to a plot to mislead investors, with the collapse of the then $40 billion LUNA ecosystem impacting the wider crypto market amid an intensifying crypto winter. „We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,“ SEC Chair Gary Gensler said in a press release on Thursday. „We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors,“ he added.

Kown Remains At Large

Unlike Sam Bankman-Fried who was arrested swiftly following the collapse of his firms FTX and Alameda Research, Do Kwon continues to evade capture. An arrest warrant had been issued by US court but so far there have been no updates as regards his whereabouts or possible extradition back into US custody.


Do Kwons alleged fraudulent activities have caused heavy losses for many investors while he remains at large with millions cashed out through an unnamed Swiss bank account. It remains unclear if any measures are being taken by either local or international law enforcement agencies to apprehend him or secure restitution for affected investors.