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Terra (LUNA): Did Do Kwon steal corporate funds?

 


The American Securities and Exchange Commission is taking a closer look at the Terra LUNA crash from a legal perspective. Team members apparently unpack!


Things don't seem to be calming down around Do-Kwon, founder of the failed Terra (LUNA) token.


According to media reports from Bloomberg and JTBC, the US Securities and Exchange Commission (SEC) has launched investigations into Terra and Do-Kwon. The Korean news agency did not name any names, while Bloomberg spoke of an anonymous informant.


The SEC has yet to comment on the matter, but Do Kwon denies an investigation.


The full course of the crash has still not been clarified and will probably take time. After Janet Yellen, US Secretary of the Treasury, called for stricter regulation of stablecoins, the SEC is now following suit.


Do-Kwon is no stranger there, as this investigation is the second in six months. An investigation into a project called Mirror Protocol has been underway since December 2021. Mirror lets users trade digital tokens designed to mirror the price of US stocks.


Is Terra Luna threatened with complete disintegration?

According to US law, a virtual currency can come under SEC oversight if Americans buy the token. The intention must be to finance the company with the aim of later making a profit. In addition, an American court is said to have issued an order to CEO Do Kwon to cooperate with the SEC by serving important documents.


While Bloomberg does not provide any further information on the process, the Korean news agency Naver, referring to JTBC , indicates that it is money laundering by none other than Do-Kwon himself.


JTBC claims the SEC held a video investigation with programmers from the Terra Luna project. One of the topics was the “bad” token design of the Luna Coin . These programmers are quoted by JTBC:


"We predicted the Terra Lunas crash and even mentioned the dangers associated with Do Kwon as CEO - but have been ignored."


But Do Kwon doesn't want to hear anything about that. He immediately announced on his Twitter profile:



The dig is obviously aimed at JTBC. Do Kwon recommends the Korean news platform to look through Github entries and look for entries by so-called "experts". He states that these "experts" never effectively contributed to the code.


To what extent does this stink of money laundering?


Some time before the crash, crypto was said to have flowed to various wallets on a monthly basis. It is about 100 million euros per month - this money is said to have been used for company expenses. Meanwhile, the Seoul police have also turned on investigations into Luna . Employees allegedly stole bitcoin .


Luna 2.0 – How much hope is there?

At least Do Kwon isn't as aggressive on Twitter as he was before the crash. He again confirms the intention to strengthen Terra 2.0 and to communicate more with the media. Unfortunately, investors cannot (yet) recognize this intention from the price.


While the old Terra Classic is listed for well under one US dollar, the new Terra is at 3 US dollars. Small consolation for all who invested before the crash. From the beginning of 20 US dollars it went to 11 and from there further and further south to now 3 US dollars.


Since Binance airdropped the first tranche of the new Terra tokens to its users, the price has been steadily dragging from all-time low (ATL) to all-time low.


Phoenix Finance was presented as the first project on the new Terra Luna blockchain . The blockchain should rise again like a phoenix from the ashes - but it is not. After just a month, it's clear that users have lost faith in Luna. A TVL of just a few million US dollars cannot be the claim of a former top 5 DeFi chain.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action that the reader takes based on the information found on our website is entirely at their own risk.

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