SEC sues Terraform Labs and Do Kwon for crypto fraud with VAT and Luna

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Von: Krypto News Österreich

Am 16. Februar beschuldigte die US Securities and Exchange Commission (SEC) Terraform Labs, das in Singapur ansässige Unternehmen hinter der Schaffung von LUNA und UST – native Tokens des Terra-Ökosystems – und seinen Mitbegründer Do Kwon, eine Multimilliarde gefördert zu haben Dollarbetrug durch das Anbieten und Verkaufen nicht registrierter Wertpapiere durch die Verwendung von Krypto-Assets. Die Klage der SEC – eingereicht beim US-Bezirksgericht für den südlichen Bezirk von New York – argumentiert, dass das von Kwon und Terraform geförderte betrügerische System sowohl Privatanlegern als auch institutionellen Anlegern über unterschiedliche Anlagekanäle Verluste in Milliardenhöhe verursacht habe. Heute haben wir die in …
On February 16, the US Securities and Exchange Commission (SEC) Terraform Labs, the company based in Singapore, accused the creation of Luna and VAT-native tokens of the Terra ecosystem-and its co-founder Do Kwon to have promoted a multi -illium fraud by offering and selling not registered securities by using the use of Crypto assets. The complaint of the SEC-submitted to the US district court for the southern district of New York-argues that the fraudulent system funded by Kwon and Terraform had caused both private investors and institutional investors via different investment channels. Today we have the in ... (Symbolbild/KNAT)

On February 16 accused the US Securities and Exchange Commission (SEC) Terraform Labs, the company based in Singapore behind the creation of Luna and VAT-native tokens of the Terra ecosystem-and its co-founder Do Kwon, a multimillion Dollar fraud by offering and selling non-registered securities by using crypto assets.

The lawsuit of the SEC-submitted to the US district court for the southern district of New York-argues that the fraudulent system funded by Kwon and Terraform causes both private investors and institutional investors via different investment channels losses in billions have.

Today we have accused the terraform Labs PTE LTD and Hyeong Kwon based in Singapore to have organized a billion-dollar crypto value paper fraud with an algorithmic stable coin and other crypto value papers.

- US Securities and Exchange Commission (@Secgov) 16. February 2023

marketing of non-registered securities

The SEC claims that the accused did not market the securities of crypto assets to search for their own advantage "by repeatedly claiming that the tokens have increased in value".

Terraform advertised its stable coin VAT as "returning" and paid up to 20 % interest from the lending and loan protocol "Anchor". According to the agency "They repeatedly misled investors" by claiming that they worked with a Korean mobile payment that used the Terra blockchain to process transactions that would invalidate the value of Luna.

The SEC claims that all of these promises were wrong and only the personal advantage of Terraform and Kwon.

In addition to Luna and VAT, Terra offered further investments such as "Massets" and Mir-token, which were also identified by the SEC as securities. Massets were basically tokenized versions of stocks, and I was the native Token from Mirror Protocol, a Dex that builds on the Terra Blockchain.

Ust was not "algorithmic", says the Sec

The accused brought misleading arguments to promote their fraud. Gary Gensler, Chairman of the SEC, said that the accused committed fraud by making "false and misleading statements" about the Terra Luna project to build confidence in the community before causing losses in millions in some cases.

"We say that Terraform and Do Kwon failed to provide the public the complete, fair and truthful disclosure that is necessary for a variety of crypto-asset value papers, especially for Luna and Terra USD. Repeated to build trust before adding the investors to devastating losses. ”

Gensler congratulated the investigative work of the SEC, which shows how far a cryptocurrency company can go to carry out fraud in the amount of several million dollars and to bypass securities laws.

Gurbir S. Grewal, Director of the SEC Division of Enforcement, emphasized that the complaint shows that the Terra ecosystem is by no means decentralized, but a "fraud that was controlled by a so-called algorithmic 'StableCoin' (VAT" of the accused, not just any code. ”

authorities do not want another terra-like event

As reported by cryptopotato , this is not the first time that Do Kwon is accused of the collapse of Terra Luna and VAT. According to reports, South Korean authorities searched the Kwon offices in Seoul in July 2022 and initiated an investigation against TFL, the company behind Terra Stablecoin. The investigation was triggered by allegations that the company had manipulated the price of its Luna token through Wash trading and other illegal activities.

reported that the investigation was still underway in September 2022. To this day, do Kwon is a refugee who is reportedly hidden in Serbia, but although there is a red display of interpol about him, he has assured several times that this is not the case.

The recent collapse of the Terra Stable Cooin has once again drawn attention to the question of stablecoin regulation. Stable coins are digital assets that are designed to maintain a stable value in relation to a Fiat currency or another asset; Some support their tokens by holding a proportional amount of the underlying asset, while other algorithms use to compensate for the markets and stabilize the price - VAT belonged to this group.

StableCoins Fiat-to-crypto transactions on stock exchanges and offer users a stable value memory. Nevertheless, their lack of regulatory supervision among the regulatory authorities has to consider it worldwide.

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