The U.S. Securities and Exchange Commission (SEC) alleged that Terraform Labs and its founder Do Kwon transferred over 10,000 BTC to a cold wallet and cashed out about $100 million via a Swiss Bank.
The regulator filed a complaint on Feb. 16 alleging that the accused offered unregistered securities and operated a fraudulent scheme.
Further analysis of the SEC filing revealed that Do Kwon and Terraform Labs transferred over 10,000 BTC into a cold wallet, and subsequently converted some of the assets to cash.
“On a periodic basis since May 2022, Terraform and Kwon have transferred- and continue to transfer- Bitcoin from this wallet to a financial institution based in Switzerland and have converted the Bitcoin to cash,” the SEC filed.
The regulator disclosed that between June 2022 and February, over $100 million in cash has been withdrawn from the Swiss Bank.
The SEC has called for the trial of Do Kwon and Terraform for allegedly operating a fraudulent scheme that wiped out over $40 billion from the crypto market in May 2022.
Do Kwon’s whereabouts remain unknown as authorities around the world have placed him on red alert. South Korean officials confirmed to have made a trip to Serbia following an intelligence report on his possible location.