Some hours ago, it was trending that Do Kwon, the founder and CEO of Terraform Labs, has got into more trouble as the United States Securities and Exchange Commission (SEC) has laid hands on evidence to prove that he was indeed involved in money laundering as alleged. The agency has also commenced an investigation to unravel the major cause of Terra’s sudden collapse.
According to the report, the SEC conducted a remote video survey of some of Terra’s key designers and focused on inquiring about Terra’s poor design structure. The report added that the sudden collapse of the Terra ecosystem had been predicted but all warnings were utterly ignored.
Read Also: Do Kwon Resurfaces to Correct Misinformation and Falsehood Making the Rounds about Terra
In the course of the investigation, the SEC reportedly discovered a situation where $80 million of the company’s funds were moved to different wallets under the guise of monthly operating expenses.
All of these reportedly played out a few months before the historic collapse of the Terra ecosystem. This particular activity raised money laundering suspicions about Do Kwon.
According to FatMan, a member of the Terra research forum, who has been exposing Do Kwon and Terraform Labs since the notable crash played out, the LUNA dumping rampage resulted in the selloff of tokens worth about $240 million.
What makes it interesting is that these whopping transactions involved only one wallet. And there is a possibility that there are other TFL-owned secret wallets that are currently holding a similar amount of tokens.
Read Also: Proposal for the Massive Burn of Terra Classic (LUNC) To Boost Price Receives 83% Support: Details
FatMan tweeted, “Here’s some more blockchain evidence backing up what the SEC told us (the whole time, they were just dumping on you). Let’s take this auxiliary TFL address: , funding transaction from TFL wallet ($240m at the time) here.
“$100m goes here, then here, and then gets sent to (KuCoin) over multiple transactions. Dump successful! But there’s way more where that came from.”
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