Do Kwon and Terraform Labs Convicted on UST and LUNA Fraud by SEC
The United States Securities and Exchange Commission (SEC) has filed charges against Terraform Labs PTE Ltd., based in Singapore, and Do Hyeong Kwon, also of Singapore, accusing them of organizing a multibillion-dollar crypto asset securities scheme using an algorithmic stablecoin and other crypto asset securities.
Cryptocurrency Market Havoc
This should not come as a surprise given that the firm filed for bankruptcy in May of the previous year. The decision of the corporation to de-peg Stablecoin UST caused shockwaves to be transmitted across the cryptocurrency market, which resulted in widespread pessimism, the recording of new lows, and a change in the pattern of behavior shown by digital currencies.
Terraform Labs and Kwon are allegedly accused of soliciting billions of dollars from investors, most of which were reportedly conducted in unregistered transactions, according to reports posted on Wu Blockchain’s Twitter account. Using the Anchor Protocol, they advertised and marketed UST as a “yield-bearing” stablecoin capable of paying up to 20% interest on investments.
In a later series of tweets, Wu Blockchain drew attention to the fact that the SEC had made it clear in the lawsuit that both Luna and UST are examples of unregistered securities. This was done by pointing out that the SEC had made it clear that both Luna and UST are examples of unregistered securities.
Kwon and Terraform Failed to Give transparent Investor Information
However, Gary Gensler, head of the Securities and Exchange Commission, said that Kwon and Terraform had yet to give investors information that was complete, impartial, or honest. More specifically, Terra (LUNA) and TerraUSD (United States Time Coordinated) are recognized as being USTC and LUNC (UST).
After Terraform Laboratories filed for bankruptcy, Do Kwon has been hiding out somewhere, and no one is now aware of his whereabouts. On the other hand, according to a report that was released not too long ago by the police in South Korea, it was believed that Kwon had moved to Serbia.
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