Du Quan and Terraform Labs, co-founders of Terra, cleared bitcoins worth more than $100m from the platform after it went bankrupt in May 2022, according to a complaint filed by the Securities and Exchange Commission.

According to a civil complaint filed by the SEC with the District people's Court of the Southern District of New York City on Feb. 16, power and Terraform have long been transferred from this platform and Luna basic Security to more than 10000 bitcoins, into a cold wallet, and then to a Swiss bank account to convert into currency in circulation. Financial regulators say the co-founder of Terra and his company are likely to be able to raise more than $100m since the gradual withdrawal in June 2022.

SEC shows that in addition to explicit bitcoin reserves, Quan and Hengyuan also artificially restore TerraU.S. The dollar is pegged to rates-when the platform collapsed, the relatively stable bitcoin was one of the largest by market capitalization. According to the civil complaint, when the platform fell below $1 in May 2021, it persuaded third parties to buy "a lot of UST to fix the dollar" and defrauded investors in terms of reliability and stability:

"fully considering that iFLYTEK Technology and Luna do not have a property reserve or any other application, the price of iFLYTEK Technology has fallen below the $1 'hook'. If the optimization algorithm can not be restored quickly, it will represent the eschatology of the entire Terraform ecosystem."

SEC also claimed that several dynamic passwords related to Terra's bankruptcy fall within the scope of its control area, "encrypted asset securities." According to SEC, the OTP includes iFLYTEK Technology, Luna and Wrading Luna, as well as MIR OTP and mAssets developed under Terra's Mirror system Agreement.

"the defendant attracts customers according to the potential of the proceeds from the sale of this encrypted asset," SEC said. " The defendant repeatedly stated that encrypted assets could appreciate in accordance with Terraform and the development, design, maintenance and promotion of the blockchain, the agreement and the entire Terraform ecosystem.

Terra's business relationships were targeted by financial regulators, and SEC reported that Han pay, which was associated with Terra at the time, used Chai "not to handle the settlement of transactions in the Terraform blockchain." Terra, in turn, is understood to have reported that "won has been used to buy and sell transactions in the real world", while claiming to the community that Chai is buying and selling transactions on the blockchain.

"during the period from October 2021 to March 2022, there will be at least five days when no buying or selling on the Terraform blockchain has been confirmed," SEC said. "however, there is no data to show that Chai's payment application failed in various periods."

After Terra went bankrupt, Quan became active again in his Twitter account, although many login password customers criticized him for causing damage to their assets and seemed to cause several "waves" of bankruptcy during the 2022 login password collapse. It is reported that the South Korean government sent two senior officials to Portugal to try to verify the co-founder of Terra. At the time of publishing the article, I did not know the whereabouts of Qiang Xiang Quan.