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Terra founder withdrew hundreds of millions of dollars months before its collapse

Terra founder withdrew hundreds of millions of dollars months before its collapse

The founder of the cryptocurrency ecosystem Terra, Do Kwon, could withdraw hundreds of millions of dollars to shadow wallets for months, anticipating the project's downfall.

As reported by Naver, referring to the Securities and Exchange Commission (SEC) investigation, the head of Terraform Labs and founder of the Terra ecosystem, Do Kwon, is suspected of money laundering, as a certain user spent months withdrawing $80 million in cryptocurrency intended for operating expenses.

According to a Korean publication, the U.S. financial regulator has already conducted a series of video interviews with several key Terraform Labs employees. Reportedly, the SEC wanted to find out if Kwon knew about the poor quality of the project's code even before the launch.

Key Terraform Labs employees repeatedly warned Kwon about the Terra and LUNA collapse, “but they were ignored.” Reportedly, the SEC has already found out that a large amount of money has been withdrawn to “dozens of cryptocurrency wallets.” It remains unclear whether Kwon himself was behind the scam, but Terraform Labs officials told the SEC that Kwon has never officially received any payment from the company.

Meanwhile, police in Seoul said a Terraform Labs employee stole bitcoins from the company last May. The amount of the theft and the suspect have not been disclosed, but police have already contacted the exchanges the employees used to make the transactions, asking them to freeze their accounts.

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