Do Kwon Cashes Out $100M of BTC, SEC Charges Him With Fraud

Von | 19. Februar 2023

• The US Securities and Exchange Commission (SEC) has charged Do Kwon, the founder of Terraform Labs, with defrauding investors.
• Kwon allegedly cashed out a massive $100 million worth of Bitcoin through a bank in Switzerland.
• SEC alleges Kwon and his company orchestrated a scheme to mislead investors and cause devastating losses for them.

SEC Charges Do Kwon with Defrauding Investors

The United States Securities and Exchange Commission (SEC) has announced charges against Do Kwon, the founder of Terraform Labs. The regulator’s complaint is that Kwon and his company orchestrated a scheme that saw him defraud investors.

Do Kwon Cashed Out $100 Million Worth of Bitcoin

Do Kwon reportedly held 10,000 BTC in a cold wallet which he cashed out through an unnamed banking provider in Switzerland. According to Bloomberg, the transfers began in June 2022 and were part of more than 10,000 BTC stashed away by Do Kwon through the Swiss-based bank.

SEC Alleges Fraudulent Activity by Do Kwon

The SEC allege that fraudulent activities had taken place up until the date they filed their official complaint against Do Kwon and his firm. Their charges point to a plot to mislead investors, with the collapse of the then $40 billion LUNA ecosystem impacting the wider crypto market amid an intensifying crypto winter.

Fugitive Status For Do Kwom

Unlike Sam Bankman-Fried who was arrested swiftly following the collapse of his firms FTX and Alameda Research, Do Kwon continues to evade capture as he remains on the run from authorities.


Do Kwom’s alleged actions have caused devastating losses for investors while also having an impact on cryptocurrency markets as well as general investor confidence within this space. It will be interesting to see how this case progresses over time as it could set precedents for future similar cases involving cryptocurrency fraudsters.