Do Kwon or Kwon Do Hyung founded Terraform Labs, which created the stablecoin TerraUSD and Luna crypto token. However, the value of these cryptocurrencies dramatically crashed in a short time last year.

The event shocked investors and other people in the crypto space, and an investigation led to the conclusion that the business was a fraud. Do Kwon already left South Korea before a deeper probe into Terraform Labs and its executives started. Thus, the authorities were not able to apprehend to question him about the crypto crash.

He is believed to be in hiding and has yet to surface even after he was already added to Interpol's red notice list. In a recent development related to the case, BBC News reported that financial regulators in the United States have charged Do Kwon and Terraform Labs for "orchestrating a multi-billion dollar crypto asset securities fraud."

"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 TerraUSD," Gary Gensler, the US Securities and Exchange Commission chairman, stated. "We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors," he added.

The collapse of Terra Luna and TerraUSD cost investors more than $40 billion. The SEC also discovered that Do Kwon has cashed out $100 million worth of Bitcoin (BTC) by moving them to a Swiss Bank. The BTC is said to be more than 10,000 units, and these were moved to a cold wallet.

The Korea Times reported that foreign media stated that Kwon sent the bitcoins to an unhosted wallet for custody of the crypto tokens amounting to $240 million or KRW312 billion. This amount is in addition to the $100 million that he is believed to have cashed in a Swiss account.

Photo by: Kanchanara/Unsplash