The dramatic crash of Terra LUNA grabbed the attention of the US Security Exchange Commission (SEC) who reported that Terra LUNA founder Do Kwon was involved in money laundering activities. It was reported that Terra LUNA employees confirmed the transfer of $80 million to unknown wallets.
The Terra LUNA occurrence still comes as a surprise to the crypto world. Which prompted the SEC to begin an investigation following Terra’s dramatic crash.
According to the reports, SEC accused Do Kwon of violating the Securities Act by using blockchain services to easily obtain US equities through Terra. Do Kwon sent out $8 million of the company’s funds monthly to multiple wallets for operating expenses for several months.
Do Kwon has been ordered by the South Korean National Tax Service to pay 100 billion won which is approximately $78 million in taxes.
The Financial Services Commission of South Korea also stated that the Terra collapse affected a good number of investors who have filed a lawsuit against Do Kwon.
Do Kwon has been silent about the accusations and tweeted that soon they’ll respond to the questions relating to Terra LUNA activities.
LUNA 2.0 is now down by 85% since its launch, continuing its downtrend as analysts predict further losses.
Featured image source: TheNewsCrypto
