Luna Crash: Co-Founder Accused of Cashing Out $80M Before Scandal

The SEC and others are investigating Terraform Labs and its co-founder Do Kwon following the collapse of the Luna and UST coins.

Employees of Terraform Labs have reportedly told the Securities and Exchange Commission that Do Kwon,..

the company's co-founder and CEO, was cashing out $80 million a month prior to the crash of the UST and Luna tokens.

The search engine Naver said the SEC "recently conducted a remote video survey of some of Terra's key designers and focused on inquiring about Terra's poor design structure."

Terraform Labs is the developer of the Terra blockchain network.

The designers said they "predicted the collapse of Terra and Luna and pointed out the danger to CEO Kwon Do-hyung several times, but they were ignored."

The SEC reportedly found that about 100 billion won, or $78.1 billion, of company funds went out every month for operating expenses a few months before Terra collapsed.

The SEC has secured internal statements that "the funds flowed into dozens of cryptocurrency wallets," JTBC reported.

for more news updates