TFL Employees to SEC -Breaking
- TFL employees revealed Kwon deliberately withdrew money before LUNA UST’s plummet.
- South Korean authorities also issued investigation orders against Kwon following the SEC’s probe.
- TFL has been ordered to comply by the US Court with subpoenas from the SEC.
Key Terraform Labs’ (TFL) employees allegedly revealed a money-laundering scheme run by Do Kwon when interviewed by the Securities and Exchange Commission (SEC) of the US. This interview was conducted to examine the sequence of events since the crash of $LUNA/$UST and subsequent launch 2.0.
1/ While most of our efforts had been spent on Terra 2.0 and making sure ecosystem developers can find a home after the depeg incident, we will soon be more proactive in communicating with the press & getting the right information out there.
— Do Kwon (@stablekwon) June 9, 2022
Many allegations against Terra founder and TFL were made after the market witnessed Terra’s plummet, which swept the whole market into red. Some of these accusations included strong evidence.
Naver reported that Kwon was aware Terra was in danger of collapsing months prior to it happening. He was also keen to get as much cash as possible, as he knew this, as well as other details. The SEC was notified and began to investigate the case.
According to reports, employees interviewed by the SEC confirmed that Kwon took $80 Million from company funds and transferred it to foreign accounts. This was before LUNA crashed.
During personal interrogation, some TFL employees apparently warned Kwon about the potential dangers pertaining to the design flaws in the Terra ecosystem, but he didn’t pay heed and continued with his money-laundering racket. Terra Anchor Developer claimed that Kwon intentionally raised interest rates from 3.6% to 20%, causing the UST crashes.
Before the launch I suggested that CEO Kwon lower the interest rate, but it wasn’t accepted.
South Korean authorities are also investigating and the regulators have allegedly blocked TFL’s founder celebrating the new Terra 2.0 network. South Korea has charged Kwon with tax evasion. The employees and Kwon are still owed nearly $78 millions in tax settlements.
Kwon, TFL were ordered by the US court to obey the SEC subpoenas. Kwon, TFL may be placed in even more serious trouble if they find evidence that supports this assertion.
Despite being questioned and scrutinized by both the SEC and South Korean authorities for Terra Stablecoins’ catastrophe, many industry experts believe Kwon will not face any criminal charges.