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- United States District Judge Jed Rakoff refused to Do Kown’s plea to bar SEC from accessing certain documents.
- The Terraform co-founder is accused of sending 9 Billion won to a South Korean law firm.
Do Kwon, According to the recent development in the Terraform case, the United States District Judge repudiated his request to bar the United States Securities and Exchange Commission’s access to certain documents.
After Terraform co-founder Do Kwon’s arrest, the entire community faces a tough battle against the regulators globally. He was detained by the police in Montenegro with dozens of forged documents.
The United States Securities and Exchange Commission filed a case against Terraform Labs and arrested the co-founder regarding LUNA’s unprecedented failure. Per the defendant’s Do, his Terraform labs offered unregistered securities.
It is important to note that Do is facing significant fraud charges in New York, Singapore, and South Korea. When Do was arrested, he had forged passports from Costa Rica and Belgium and a Hawaiian driving license.
Who is Behind Terraform Failure?
On April 15, 2023, TheCoinRepublic reported that Do has 9 Billion won ($7 billion) to South Korean prosecutors. According to KBS News, the amount deposited in Kim & Chang’s account was from Terraform’s account.
It is believed that billions of dollars were sent from the Terraform account to the law firm just 4-5 days before the crash. Transferring funds right before the company’s collapse allegedly indicates that Kwon knew that his foundation would die and its time was close (two-three days.)The amount deposited in the law firm’s account was the legal fee to eliminate the matter.
Do Kwon was on the radar of the USA, Singapore, and South Korean authorities, and the allegation that these countries imposed on Kwon were Fraud, Market Manipulation, Commodities Fraud, Securities Fraud, and Conspiracy to Defraud. The Seoul government sued Kwon for violating the Capital Market Law and accused five more Terraform employees in the case.
The fall of TerraUST was significant enough to put a hole in the burgeoning asset class market. This instance shook the broader crypto industry and started a ripple effect, a potential reason behind several big names in the industry in the following days.
Another big collapse in the history of cryptocurrency happened on November 11, last year. FTX, once the world’s second-largest crypto exchange platform, valued at $32 billion (USD) at its peak, owed millions of frustrated customers money at the end of 2022 due to its liquidity and solvency concerns.
Disclaimer
The views and opinions stated by the author or any people named in this article about Do Kwon are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
