U.S. Securities and Exchange Commission (SEC) accuses Do Kwon of violating the registration and anti-fraud provisions of the Securities Act and Exchange Act.
Founder of Terraform Labs Do Kwonallegedly involved in a multibillion-dollar scam involving the extortion of investors’ funds.
The SEC reported the news on its Twitter account. announced. “Today we accused Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon of orchestrating a multi-billion dollar crypto-asset security scam involving an algorithmic stablecoin and other crypto-asset securities.”
Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.
NEWS CONTINUES BELOW— US Securities and Exchange Commission (@SECGov) February 16, 2023
The shared press release made it clear that from April 2018 to May 2022, Terraform Labs and its founder Do Kwon offered crypto-asset securities, many of which were in unregistered transactions. Kwon has raised billions of dollars from investors as a result.
mAssets and Terra USD (UST), which are considered an unregistered crypto-asset, are clearly on the list. In addition, Terraforms and Do Kwon are allegedly selling MIR, also known as Mirror token, to investors.
Koinfinans.com As we have reported, SEC Chairman Gary Gensler believes that sufficient transparency has not been provided to the public to guide its decisions regarding investments in LUNA and Terra USD. Gensler argues that Kwon cheated by making repetitive statements that are both false and misleading. Investors suffered devastating losses as a result.
Source : Crypto News Flash