Breaking: SEC’s Latest Terra Probe Reveals Shocking Details

Anvesh Reddy
June 9, 2022 Updated July 15, 2022
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Terra's hard fork plans were criticized on Twitter

Amidst a separate investigation by the South Korean police over Terra’s embezzlement of funds, a fresh probe is in the offing. On Tuesday, a Terraform Labs employee was arrested by the Seoul Metropolitan Police Agency for stealing 80 Bitcoin.

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Shocking Probe On Money Laundering By Terra

According to a report by South Korean portal Naver, the SEC caught hold of Terra’s money laundering situation. This is in addition to the ongoing SEC investigation over allegations surrounding the collapse of Terra and Luna.

As per the report,

“The US Securities and Exchange Commission recently conducted a remote video survey of some of Terra’s key designers and focused on inquiring about Terra’s poor design structure. The designers earlier predicted the collapse of Terra and Luna. They pointed out the danger to CEO Do Kwon several times, which were not taken seriously.”

In a shocking revelation, the SEC found that about 100 billion won of company funds were embezzled every month. It is said to have found the funds were sent out for operating expenses few months before the Terra collapse. Hence, this plan is believed to be Kwon’s sketch to launder money, the report added.

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SEC Obtained Proof For Money Laundering

Also, the US regulatory body found internal evidence on the transfer of money into ‘dozens of cryptocurrency wallets’. However, it is said that Kwon has not received any of the money in his personal capacity.

In a separate Terra investigation, it was found that an employee the company stole Bitcoin worth around $2.39 million. The stealing is believed to have been done during Terra’s collapse last month.

Meanwhile, the news of this investigation had a huge negative impact on Terra’s price. As of writing, Terra is trading at $2.69, down 23.66% in the last 24 hours, according to CoinMarketCap. Repeated instances of investigations and suspicion around the project could further dampen Terra price, after huge loss of investor confidence.

On the other side, FatMan, a Terra insider who had been making similar allegations against Kwon, commented on this development. He said this confirmed the information he had previously leaked through his sources. “This corroborates the information provided by my sources.” He indicated that Kwon had silently been cashing out hundreds of millions into foreign bank accounts & bitcoin wallets.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.