The U.S. Securities and Exchange Commission filed charges against Terraform Labs and its CEO, Do Kwon, relating to the May 2022 collapse of the Terra/Luna projects. The complaint accuses Terraform and Kwon of offering unregistered securities and of fraud, and the SEC wrote in a press release that Kwon and the company “orchestrat[ed] a multi-billion dollar crypto asset securities fraud”.
According to the SEC, Kwon “repeatedly misled and deceived investors” about the characteristics and stability of Terra and Luna, and tricked investors into believing that a popular Korean mobile payments platform used the Terra blockchain.
Kwon has been on the run from the law since Korean authorities filed a warrant for his arrest in September 2022. An Interpol red notice followed soon after. He is reportedly hiding out in Serbia, and Korean authorities reportedly traveled there in early February to hunt for him.
“SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes”
, United States Securities and Exchange Commission
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