Terraform Labs and its founder Do Kwon have been accused of cryptocurrency fraud by the SEC
trueweek.comDo Kwon On Thursday, the US Securities and Exchange Commission (SEC) brought charges against Singapore-based company Terraform Labs and its founder, Do Kwon, for securities fraud and multibillion-dollar cryptocurrency scams.
The charges come almost a year after the collapse of the Terra Luna and Terra USD (UST) tokens, which resulted in a loss of over $30 billion.
According to the SEC, Terraform and Do Kwon deceived investors on multiple fronts, including promises of token profitability, payment processing procedures on their platforms, and the stability of the crashed algorithmic stablecoin UST.
The UST collapse was the root cause of the May Terra drop, where the token sharply fell from $1 and never recovered. Does Kwon reportedly go into hiding following the crash, which is also under investigation by South Korean authorities?
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