The SEC has charged Terraform, $LUNA / $UST, and CEO Do Kwon with defrauding investors

The SEC charged Terraform and its CEO Do Kwon with defrauding investors.

Kwon and Terraform perpetrated a “multi-billion” dollar fraud against investors as part of marketing the TerraUSD and luna coins, which collapsed in May 2022, per the SEC.

The SEC alleges that Kwon marketed those assets, including those mAsset swaps and Terra, as profit-bearing securities, “repeatedly claiming” the tokens would increase in value.

“Today’s action not only holds the defendants accountable for their roles in Terra’s collapse, which devastated both retail and institutional investors and sent shock waves through the crypto markets, but once again highlights that we look to the economic realities of an offering, not the labels put on it,” SEC enforcement director Gurbir Grewal said in a statement.

Kwon’s current whereabouts are unknown, but the Terra co-founder was recently believed to be in Serbia, according to South Korean intelligence.

Read more: https://unusualwhales.com/news/interpol-issues-red-notice-for-terraform-founder-do-kwon