- The SEC previously said Kwon transferred $100 million to the bank account
- Part of the money was spent on a lawyer
- South Korean and U.S. investigators requested the accounts be frozen
In February, the SEC reported that Do Kwon transferred 10,000 BTC to an unspecified Swiss bank..
The Seoul South District Prosecutor’s Office said it is monitoring the further movement of these funds.
According to her, the money was in the accounts of Sygnum Bank AG, believed to be the world’s first regulated digital asset bank headquartered in Zurich, Switzerland.
The Seoul South District Attorney’s Office confirmed that funds were indeed transferred to the bank, but not all remained in the account..
He permanently converted some to cash and spent some on a lawyer.
“We have confirmed that the $100 million was used in several places rather than remaining in the Sygnum account.. Some transfers were made to the account of the law firm Kim & Chang.”
In addition, prosecutors have received requests from South Korean and U.S. investigative authorities to freeze Sygnum bank accounts.
However, the situation is complicated because the Swiss government, as well as the banks involved, will have to determine whose request for a freeze was filed first.
Now, lawyers for the scandalous cryptocurrency runner have asked a U.S. court to drop the charges filed against him.
They explain that the SEC has no clear jurisdiction and cannot regulate digital assets. And UST Stablecoin is a currency, not a security.