💰 Terraform Labs founder Do Kwon is once again at the center of a high-profile cryptocurrency scandal, with the SEC filing a lawsuit against him and his company, alleging that they engaged in fraudulent activities that led to losses of at least $40 billion. The allegations stated that Kwon and his team transferred more than 10,000 Bitcoin from their failing project into a so-called "cold wallet" and then moved the assets to a Swiss bank, according to a Bloomberg report. Follow benzinga The funds were then converted to cash, with over $100 million in fiat currency withdrawn from the bank since June 2022. The case has shed light on the murky world of stablecoins, which are digital currencies designed to maintain a fixed value, often pegged to the U.S. dollar or another fiat currency. Kwon created the TerraUSD stablecoin, which was intended to hold a constant value of $1 through a combination of algorithms and trader incentives involving a sister token called Luna. In May 2022, the...