The SEC has charged Terraform Labs and Do Kwon with orchestrating a multi-billion dollar cryptoasset securities fraud

BlockBeats News, February 17, the United States Securities and Exchange Commission (SEC) announced that it has filed a complaint in the United States District Court for the Southern District of New York, Accused Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon of orchestrating a multi-billion dollar crypto asset securities fraud involving algorithm-based Stablecoin and other crypto asset securities, violating the registration and anti-fraud provisions of the Securities Act and the Exchange Act. Between April 2018 and May 2022, when the scheme finally collapsed, Terraform and Do Kwon raised billions of dollars from investors by issuing and selling a set of interconnected crypto asset securities, many of them in unregistered transactions, according to the SEC's charges, These include mAssets, a security-based swap trade, and Terra USD (UST), a crypto security known as algorithmic Stablecoin. In addition, the SEC alleges that Terraform and Kwon offered and sold investors other ways to invest in their "cryptocurrency empire," including the crypto asset security Token MIR (or Mirror Token) and LUNA itself. Terraform and Kwon market crypto asset securities to investors, repeatedly claiming that the tokens will increase in value.