{"id":552882,"date":"2023-02-17T01:14:54","date_gmt":"2023-02-16T22:14:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/breaking-sec-sues-do-kwon-and-terraform-labs-for-fraud\/"},"modified":"2023-02-17T01:14:54","modified_gmt":"2023-02-16T22:14:54","slug":"breaking-sec-sues-do-kwon-and-terraform-labs-for-fraud","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/breaking-sec-sues-do-kwon-and-terraform-labs-for-fraud\/","title":{"rendered":"# Breaking: SEC sues Do Kwon and Terraform Labs for fraud"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a299d79916ea\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a299d79916ea\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/breaking-sec-sues-do-kwon-and-terraform-labs-for-fraud\/#%E2%80%9D_Breaking_SEC_sues_Do_Kwon_and_Terraform_Labs_for_fraud_%E2%80%9C\" >&#8221; Breaking: SEC sues Do Kwon and Terraform Labs for fraud &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Breaking_SEC_sues_Do_Kwon_and_Terraform_Labs_for_fraud_%E2%80%9C\"><\/span>&#8221; Breaking: SEC sues Do Kwon and Terraform Labs for fraud &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvYzIxMzBmZDktN2EyZS00NjI1LWFmNDItNzYxMGM5MTA5ZDYxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Terraform Labs and its founder Do Kwon for allegedly &#8220;orchestrating a multi-billion dollar crypto asset securities fraud.&#8221;<\/p>\n<p>In a Feb. 16 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/press-release\/2023-32\">statement<\/a>, the SEC said Kwon and Terraform offered and sold an &#8220;inter-connected suite of crypto asset securities, many in unregistered transactions.&#8221; It pointed to its now collapsed algorithmic stablecoin, TerraClassicUSD (USTC) and its connected cryptocurrency Terra Luna Classic (LUNC).<\/p>\n<p>The SEC also took issue with mAssets, crypto derivatives that mirror the stock price of publicly listed companies and Terraform&#8217;s issuance of Mirror (MIR) \u2014 a governance token for the Mirror protocol which lists mAssets. <\/p>\n<p>In a statement, SEC Chair, Gary Gensler, alleged Kwon and Terraform &#8220;failed to provide the public with full, fair, and truthful disclosure&#8221; particularly for USTC and LUNC \u2014 formerly named Terra (LUNA) and TerraUSD (UST), and added:<\/p>\n<blockquote><p>&#8220;We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.&#8221;<\/p><\/blockquote>\n<p>The SEC filed its <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.courtlistener.com\/docket\/66820843\/1\/securities-and-exchange-commission-v-kwon\/\">complaint<\/a> in the U.S. District Court for the Southern District of New York with charges relating to violations of the registration and anti-fraud provisions of the Securities Act and the Exchange Act.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">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.<\/p>\n<p>\u2014 U.S. Securities and Exchange Commission (@SECGov) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SECGov\/status\/1626347690853376008?ref_src=twsrc%5Etfw\">February 16, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Gensler commended the SEC&#8217;s staff on their investigation and alleged: &#8220;The defendants attempted to prevent us from obtaining important information about their business.&#8221;<\/p>\n<p><em><strong>Related: Korean e-commerce exec accused of accepting LUNA for shilling Terra Labs<\/strong><\/em><\/p>\n<p>&#8220;This case demonstrates the lengths to which some crypto firms will go to avoid complying with the securities laws,&#8221; he added.<\/p>\n<p class=\"post-content__disclaimer\">This is a developing story, and further information will be added as it becomes available.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-sues-do-kwon-and-terraform-labs-for-fraud\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Breaking: SEC sues Do Kwon and Terraform Labs for fraud &#8220; The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Terraform Labs and its founder Do Kwon for allegedly &#8220;orchestrating a multi-billion dollar crypto asset securities fraud.&#8221; In a Feb. 16 statement, the SEC said Kwon and Terraform offered and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":552883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c2130fd9-7a2e-4625-af42-7610c9109d61.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74898,122378,70934],"class_list":["post-552882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-sec","tag-terra","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/552882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=552882"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/552882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/552883"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=552882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=552882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=552882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}