Crypto Scandal: Terraform CEO’s Billions Found in Swiss Bank, SEC Takes Action

Terraform Labs CEO under fire for transferring billions to Swiss bank Signum.
SEC files lawsuit against Kwon Do-hyung and TFL for issuing unregistered securities.
Prosecutors uncover details of funds’ usage and track remaining billions in Signum account.

Crypto CEO’s Billions Discovered in Swiss Bank: A Scandal Unfolds

A recent investigation has revealed that Terraform Labs (TFL) CEO Kwon Do-hyung and TFL’s SYGNUM bank accounts hold billions of won. The US Securities and Exchange Commission (SEC) filed a lawsuit in February against Kwon and TFL, alleging unregistered securities issuance and accusing the CEO of transferring 10,000 BTC (approximately 300 billion won) to a Swiss bank, Signum.

Signum, established in 2017 in Zurich, Switzerland, is the world’s first virtual asset bank. The Seoul Southern District Prosecutor’s Office’s Financial and Securities Crime Joint Investigation Unit (Head Dan Seong-han) confirmed on April 25 that they continue tracking Bitcoin owned by Luna Foundation Guard (LFG), with some already converted into cash and stored in the Signum account.

The prosecution indicted 10 individuals, including former TFL co-chairman Shin Hyun-seong, without detention. They revealed that the $100 million transferred to Signum was used in various places, with some money going to the Kim & Chang law office account for attorney’s fees. Billions of won still remain in the account.

The SEC’s complaint against Kwon and TFL, filed in February 2023, stated that the defendants sent 10,000 bitcoins from TFL and LFG accounts to personal wallets or cold wallets. By the time the lawsuit was filed, over $100 million had been withdrawn.

The prosecution added that freezing the Signum account would depend on the Swiss government and banks’ decision on which freeze request, from South Korea or the US, should proceed first.

On the same day, the group said, “We plan to do our best for the repatriation of CEO Kwon to Korea for smooth relief of the victims.”

Investment Reminder:

Be careful not to invest more than you can afford to lose, as there are no guarantees in the crypto space.

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José Gustavo

José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.