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US Regulator Charges ‘Cryptocrash’ Boss with Fraud

BBC | Annabelle Liang | Feb 27, 2023

Do Kwon - US Regulator Charges 'Cryptocrash' Boss with Fraud

Terra form Labs Founder: Do Kwon

US financial regulators have charged failed South Korean cryptocurrency boss Do Kwon and his company Terraform Labs with "orchestrating a multi-billion dollar crypto asset securities fraud".

  • "We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for Luna and TerraUSD," US Securities and Exchange Commission (SEC) chairman Gary Gensler said in a statement.
    • According to the SEC, Mr Kwon and his company raised billions of dollars from investors by selling them "an interconnected suite of crypto asset securities" with many transactions being unregistered.
    • The SEC also alleged Mr Kwon and Terraform claimed repeatedly that the tokens would increase in value, and misled investors about the stability of TerraUSD.

See:  Kraken Agrees to $30 million Settlement with SEC and Stops U.S. Customer Staking Program

  • The Singapore-based firm created the Terra Luna and TerraUSD tokens, which collapsed spectacularly last year estimated to have cost investors more than $40bn (£33.5bn).
  • The SEC complaint, which included other allegations, did not state where Mr Kwon was located.   In December, South Korean authorities, who have issued an arrest warrant for Mr Kwon, said they believed he was in Serbia.

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