The US Securities and Exchange Commission (SEC) has sued Terraform Labs, the issuer of the crashed stablecoin Terra USD (UST), and the company’s founder, Do Kwon, on multiple charges.
On February 16, the SEC announced to Terraform and Do Kwon that the UST securities based on the claim that off the record selling securities, Anchor Protocol (ANC) and Terra (LUNA) about investors missing or incorrect sued for informing. At the same time Anchor Protocol and LUNA in securities was considered.
Terraform and Do Kwon allegedly committing “fraud”, the defendants’ UST’s reliability investors on misled was put forward.
Head of Institution Gary Gensler In a statement on the subject, Terraform and Do Kwon told investors about a range of crypto securities, most notably LUNA and UST. that they did not provide the necessary and correct information He claimed. Gensler also asserted that the defendants had lost the trust of investors. to establish for wrong And misleading He also claimed that they were committing fraud.
SEC official on lawsuit filed in Southern Court for the District of New York Gurbir Grewal, what is UST decentralized nor financial stated that. In addition, UST, a so-called algorithmic stablecoin, code by not the defendants by control claimed to have been.
Experts criticize SEC’s claims about stablecoins TOP with that they continue suggested. BUSD followed by UST easy One victory taking this precedent It was among the assumptions put forward by experts that they could use it in other stablecoin cases.