The SEC claims that the BTC assets are in cold wallets that are not associated with any exchanges.
After secretly investigating Do Kwon and Terraform Labs, the US Securities and Exchange Commission (SEC) said Do Kwon withdrew 10,000 bitcoins shortly after the FTX crash.
Specifically, a source from Bloomberg said, “According to the latest allegations from the SEC, Kwon used an unnamed Swiss bank to withdraw over $100 million worth of BTC.”
The date of Kwon’s bitcoin withdrawal was revealed by the SEC to be in June 2022.
More than 10,000 BTC were transferred from a centralized exchange to a cold wallet, the SEC emphasized, which remained in the cold wallet for a short time after the collapse of the Terra ecosystem.
Kwon then began moving BTC in May 2022 and sent the BTC to a Swiss-based bank before exchanging it for cash.
South Korean prosecutors say Kwon has been on the run since last year’s Terra crash, he is believed to be hiding in Serbia. “We are continuing to work to locate Kwon and it is difficult to confirm anything related to the investigation at this stage,” prosecutors said.
Recently, the SEC officially sued Kwon and Terraform Labs for planning to scam investors, causing billions of dollars of users invested in UST and LUNA to almost zero.
See also: SEC sues Do Kwon and Terraform Labs for fraud and misleading investors