Terra Labs employees have reportedly confirmed to the US Security and Exchange Commission (SEC) that CEO Do Kwon was withdrawing large sums of money every month prior to LUNA and UST’s collapse.
- South Korean news outlet, Naver, reported that over KRW$100 billion (~US$80,000,000) of company funds were being withdrawn in the few months leading up to the collapse of UST and its sister coin, LUNA.
- South Korean TV Network, JTBC, reported that the SEC secured internal statements that “the funds flowed into dozens of cryptocurrency wallets.” The funds were reportedly being siphoned to various wallets for operating expenses.
- These funds are reportedly being linked to suspicion of money laundering against Do Kwon. A key internal informant stated that Do Kwon had not received any official payments from the company.
- JTBC revealed a key designer from Terra Lab’s stated “We predicted the collapse of Terra and LUNA, and pointed out the danger to CEO Kwon Do-hyung several times, but they were ignored.”
