SEC Files Charges Against Terraform Labs CEO
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The US Securities and Exchange Commission (SEC) has charged Terraform Labs and its CEO, Do Kwon, with orchestrating a multibillion-dollar securities fraud.

According to the document released by the regulator:

"From April 2018 until the scheme’s collapse in May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions."

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According to the SEC, the algorithmic stablecoin TerraUSD (UST) and the token LUNA were crypto asset securities. The department has added that the Singapore-based company, along with its CEO, misled investors, promising an increase in asset prices and assuring them of their stability.

According to SEC chief Gary Gensler, Terraform and Do Kwon failed to provide the public with "full, fair, and truthful disclosure."

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He has noted:

"We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors."

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