US SEC charges Terra founder Do Kwon with fraud | – #SEC #charges #Terra #founder #Kwon #fraud
February 16 (Reuters) – USA The Securities and Exchange Commission has accused cryptocurrency developer Do Kwon and his company Terraform Labs of defrauding investors in what the regulator considers a multibillion-dollar scheme, according to a filing in federal court.
Kwon founded the blockchain platform Terraform Labs and was the lead developer of two cryptocurrencies that rocked cryptocurrency markets around the world last year. According to the SEC’s lawsuit in the Southern District of New York, he 2018of the year April It has raised billions from investors by selling a range of interconnected digital assets, many of which are unregistered securities, starting in dollars won.
The SEC filing did not say where Kwo lives. In September, a South Korean court ruled that Kwon was living in Singapore imprisonment made the decision, but Singapore Police His strength said he was not in the city state at the moment. Kwon could not immediately be reached for comment.
USA TerraUSD, an algorithmic stablecoin that is supposed to remain stable at a 1:1 ratio to USD, has gained its value through another paired token called Luna.
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TerraUSD aka UST 1:1 in May 2022 dollars both tokens lost almost all of their value when they dropped below . TerraUSD 18.5 before the collapse on May 9 billion had a market capitalization of more than 100,000 dollars and was in tenth place. the largest cryptocurrency.
According to the SEC’s complaint, Terraform Labs and Kwon misled investors about the stability of UST and claimed that the firm’s cryptotokens would increase in value.
Terraform Labs did not immediately respond to a request for comment.
“This case demonstrates the lengths to which some crypto firms will go to avoid compliance with securities laws, while also demonstrating the power and commitment of the SEC.
dedicated public servants,” said SEC Chairman Gary Gensler.
According to blockchain analytics firm Elliptic, globally, investors in TerraUSD and Luna are about 42 billion lost dollars.
The market turmoil following the collapse of TerraUSD led to the failure of several major crypto companies, including US cryptocurrency Celsius Network and Singapore-based crypto fund manager Three Arrows Capital.
Reporting by Hannah Lang in Washington; Edited by Chris Reese and David Gregorio
Our standards: Thomson Reuters Trust Principles.
2023-02-17 04:59:04
Source – reuters
Translation“24 HOURS”