The American securities regulatory body secured regulatory approval to tie up with South Korean enforcement agencies to investigate the Terra crypto fraud.
Terraform Labs is the developer team behind Terra (Luna) & TerraUSD stablecoin (UST). In May 2022, Luna & UST collapsed under a highly volatile situation. Later some of the investigations revealed that Terra’s key leaders were misusing their power to play with Luna & UST Investors’ money.
In Feb 2023, The United States Securities Exchange Commission (SEC) raised charges against Terraform Labs & Terra co-founder Do Kwon over running a Ponzi crypto project in the US jurisdiction.
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
In this matter, the SEC body recently received regulatory approval from District Judge Jed Rakoff to work with the forces of South Korea to probe further into Terraform Labs and question Daniel Shin, Terraform Labs’ Co-founder.
Shin is the founder of Chai Corp and he founded this company in 2019. Evidence showed that Shin was in a mutual relationship with Terraform Labs, as the two companies distanced from each other officially in 2020. The US SEC is taking that dissociation decision as an important part of the Terra crypto fraud case.
So far, the Terraform labs dismissed any kind of allegations like illegal activities, unethical financial transactions, and misconduct operations in the Terra project.
After the collapse of the Terra empire, Terra co-founder Kwon was on ran but in Dec 2022 he was arrested by the Montenegro police with forged I’d documents. For such unethical activities, he was sentenced to jail for 4 months. Against these allegations, Kwon claimed that a third person gave the forged documents to him & denied that he ever used them in the past.
Read also: Finally, the US SEC itself admitted that crypto tokens are not a security
US SEC will investigate Terra crypto fraud collaboratively with Korean agencies
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https://bitcoinik.com/us-sec-will-investigate-terra-crypto-fraud-collaboratively-with-korean-agencies/feed/
