Kwon is accused of misleading investors regarding the question of UST stability.
The Key TakeawaysThe SEC sued Terraform Labs, Do Kwon and Do Kwon.
It claims Kwon sold securities that were not registered and violated federal securities laws.
The agency is seeking civil money penalties, disgorgement and to ban Kwon’s purchase or sale of crypto assets.
Share this article The SEC charged the defendants with offering and selling unregistered securities and violating antifraud provisions of federal securities law. The agency is seeking civil money penalties, disgorgement with interest and the ban on Kwon and Terraform Labs from ever buying, selling or offering “crypto assets securities”. According to Gary Gensler, SEC Chair. “We also allege they committed fraud by repeating false or misleading statements to build investor trust before causing devastating loss for investors.” Terra’s stablecoin wasn’t undercollateralized. This means that it was not backed 1:1 by reserves. Instead, the protocol would either burn Terra’s native token, LUNA to produce an equivalent amount of UST, or, on the other hand, create LUNA tokens that can be used to redeem UST. After Interpol issued a red alert for him, the flywheel mechanism sent LUNA/UST into a spiral of death, wiping out more than $40 billion in crypto market value. In December, South Korean authorities claimed that he was hiding out in Serbia. Disclaimer: The author of this article was a recipient of BTC, ETH, as well as other crypto assets at the time of writing. However, Decentral Media, Inc. does not warrant the timeliness, completeness, accuracy, or currency of any information accessed through this site. Decentral Media, Inc. does not provide investment advice. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News