Posted on by

SEC charges Do Kwon, Terraform with fraud in connection with Terra collapse



Share

Do Kwon, co-founder and chief executive officer of Terraform Labs, in the company’s office in Seoul, South Korea, April 14, 2022.Woohae Cho | Bloomberg | Getty ImagesThe Securities and Exchange Commission charged Terraform Labs and its CEO, Do Kwon, with fraud, alleging that they orchestrated a multibillion dollar “crypto asset securities fraud,” the SEC said Thursday.Kwon and Terraform allegedly schemed from Apr. 2018 until the collapse of TerraUSD, also known as UST, and its sister coin luna in May 2022 to raise billions of dollars from investors through the offer and sale of an “inter-connected suite” of crypto asset securities, including securities-based swaps that mirrored U.S. equities, and most famously, the so-called “algorithmic stablecoin” TerraUSD. The company advertised UST as a “yield-bearing” coin, offering to pay interest of up to 20 percent, according to the complaint.Like many stablecoins, UST was pegged at a 1-t …

Read More