A US court instructs the boss of Terraform Labs to follow the lectures on the SEC

A US court has instructed the CEO of the collapsed stablecoin operator Terraform Labs to comply with the supervisory authority in which documents and materials in connection with the sale of potential non-registered securities are requested.

The US Court of Appeals in New York confirmed the complaint of the Securities and Exchange Commission on Wednesday, which is looking for information about the Mirror Protocol, a trade network that builds on the Terra ecosystem and offers customers token who exactly reflect some of the largest of the largest of the largest listed companies such as Apple and Amazon.

The victory of the regulatory authority marks another blow for the head of Terraform Labs, do Kwon, who after the sudden collapse of Terrausd, a stablecoin, and the associated token Luna worth 40 billion

The 30-year-old South Korean was the chief developer of Terrausd, whose collapse last month sent shock waves by the crypto industry. The Mirror Protocol was also developed by Kwon’s Terraform Labs in the hope of combining traditional finances with crypto.

The interest of the SEC am Mirror Protocol is preceded by the collapse. Tokens on the platform should represent the price of real shares-or "mirror"-and should give international investors access to the US stock markets.

The SEC delivered lectures on Kwon at a top -class industry conference in New York last September. First of all, Kwon denied to have received the lectures, and then he and Terraform Labs went against the Sec.

Kwon and Terraform Labs argued that the SEC violated its own rules by not treating the lectures confidentially, and also claimed that the company had no significant business presence in the United States.

"The lectures were publicly delivered to Mr. Kwon: Mr. Kwon was approached by the process server when he left a escalator at the Mainset summit while he was on the way to keeping a planned presentation that was not about the Mirror protocol," says the court documents in front of the US district court in New York.

The Court of Appeal rejected the claims of Terraform Labs and pointed out that it had employees in the United States, including a director who advertised the tokens in question.

"In the attempt to conclude an agreement with a company based in the USA, [Terraform Labs and Kwon] stated that 15 percent of the users of his Mirror protocol are in the USA," the court ruling said.

At the same time, the South Korean authorities deepen their investigations into Terraform Labs and Kwon.

Last month, the public prosecutor's office of the southern district of Seoul initiated an investigation into complaints submitted by Terraform Labs investors, in which it was claimed that the company and its founders had "deceived investors with their incorrect algorithmic coins".

The police in Seoul also examines allegations that an employee of Terraform Labs has embezzled funds using the company's Bitcoin stocks. The prosecutors of Kwon and South Korea refused to comment on the investigation of the SEC.

Terraform Labs has launched a new blockchain, Terra 2.0, and an accompanying luna token since the breakdown of the original. It is traded at around $ 3 after it has fallen by more than 80 percent compared to its starting price. The original luna is traded for less than one cent.

Additional reporting of Song Jung-A in Seoul