The securities regulatory body of the United States (US) initiated a lawsuit against Do Kwon over what he did with Terra (Luna) & TerraUSD stablecoin with the US Crypto Investors.
Do Kwon is the founder of TerraForm Labs, an engineering team behind the Terra blockchain network. The Terra project team was running TerraUSD stablecoin & Luna crypto coin. Luna & TerraUSD were integrated via a protocol, to maintain the value of each TerraUSD equal to $1. In May 2022, Luna & TerraUSD collapsed badly under a high-sell-pressure situation. Later the team launched a new Luna coin & left TerraUSD with a very big loss for the crypto investors.
On 17 Feb 2023, The United States Securities and Exchange Commission (SEC) announced that the agency filed fraud charges against Do Kwon over multi-billion dollars fraud with the use of TerraUSD & Luna coin, in a NewYork court.
Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.
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— U.S. Securities and Exchange Commission (@SECGov) February 16, 2023
The SEC agency noted that Terra Labs made billions through its Terra crypto project on behalf of the manipulation of Luna coin price via TerraUSD stablecoin.
According to the SEC, the Terra team failed to disclose the real financial activities & risks behind the Terra project and in this way they deceived huge numbers of people, including US citizens.
Old Luna coin investors & their expectations
After the downfall of the Luna coin & TerraUSD, the Terra project team launched a new Luna coin and renamed the old Luna coin to Luna classic (LUNC).
In the present time, many crypto exchanges are supporting this coin to burn supply as much as possible so that the Lunc project could remain alive.
The current Lunc trade price is $0.00016 & this trade price is 5.59% down over the last 24 hours’ trade price.
Read also: Cardano’s founder facing criticism for his new staking model
US SEC files fraud charges against Terra Labs founder Do Kwon
https://bitcoinik.com/us-sec-files-fraud-charges-against-terra-labs-founder-do-kwon/feed/
https://bitcoinik.com/us-sec-files-fraud-charges-against-terra-labs-founder-do-kwon/feed/
