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Blockchain Entrepreneur’s Misuse of Funds Put Under the Radar

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According to reports, the United States Securities and Exchange Commission (SEC) said that Do Kwon and its company transferred more than 10000 Bitcoins from th…

Blockchain Entrepreneur’s Misuse of Funds Put Under the Radar

According to reports, the United States Securities and Exchange Commission (SEC) said that Do Kwon and its company transferred more than 10000 Bitcoins from the project and exchanged some of them for cash through a Swiss bank.

US SEC: Do Kwon and Terraform transferred more than 10000 Bitcoins and cashed out US $100 million through Swiss bank

Interpretation of the news:


The Securities and Exchange Commission (SEC) in the United States has reportedly flagged Do Kwon and his company for transferring more than 10000 Bitcoins from the project and exchanging some of them for cash through a Swiss bank. The issue is related to potential misuse of funds, and the SEC has initiated an inquiry on this matter.

Do Kwon is a leading blockchain entrepreneur, who co-founded the Terraform Labs blockchain ecosystem. The Terraform Labs project has been a significant player in enabling decentralized financial services that are not tethered to traditional financial institutions. The move towards decentralization has attracted a lot of attention from investors, and Kwon’s company was no exception.

With the growing popularity of blockchain and cryptocurrencies, investors are keen to put their funds into blockchain-based startups. However, due to the lack of regulation in this space, instances of fraud, mismanagement, and misuse of funds have been increasingly common.

The SEC, therefore, has strict rules and regulations to protect investors from such scams. The authority requires blockchain companies to make disclosures about their financial situation and ensure the correct use of funds. In case of any mismanagement or misuse of funds, the SEC can impose hefty fines and punishments on the company and its directors.

Do Kwon and his Terraform Labs are now under the scanner of the SEC due to their transfer and exchange of over 10000 Bitcoins. The investigation is looking into whether these transactions were legitimate, or they represented an attempt to misuse the company’s funds. If the investigation shows that there was wrongdoing, it could lead to severe implications on the Terraform project and its investors.

In conclusion, the SEC’s inquiry against Do Kwon and his company shows that the increasing popularity of blockchain-based startups has led to the need for stricter regulations. It highlights the importance of ensuring that companies make proper disclosures and follow guidelines related to the use of funds. By doing so, investors can be confident that their money is being used correctly and avoid becoming victims of fraud or financial scams.

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