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Do Kwon Transferred 10,000 Bitcoin From Terra After Collapse 

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The United States Securities and Exchange Commission (SEC) has filed a complaint against Terra co-founder Do Kwon and Terraform Labs.

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The complaint alleges that Kwon and Terraform Labs laundered more than $100 million worth of Bitcoin from the platform following its collapse in May 2022.

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The SEC complaint was filed in the U.S. District Court for the Southern District of New York on Feb. 16.

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Kwon and Terraform have transferred more than 10,000 Bitcoin from the platform and the Luna Foundation Guard to a cold wallet, then to a Swiss bank account to convert to fiat.

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The SEC suggests that Kwon and Terraform may have access to more than $100 million in cash since withdrawals started in June 2022.

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The SEC complaint also accuses Kwon and Terra of artificially restoring TerraUSD’s (UST) dollar peg.

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The stablecoin had been one of the largest by market capitalization at the time the platform collapsed.

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The complaint alleges that the platform solicited a third party to purchase "massive amounts of UST to restore the $1.00 peg" when it dropped below $1 in May 2021.

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The SEC accuses Kwon and Terra of misleading investors as to the stability and reliability of UST.

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The case will be heard in the U.S. District Court for the Southern District of New York.

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