Home 2023 SEC Sues Do Kwon Over Terra $40 Billion Fraud

SEC Sues Do Kwon Over Terra $40 Billion Fraud

The SEC are now suing Do Kwon, stating that the founder of Terra, “perpetuated a fraudulent scheme that led to the loss of at least $40 billion of market value.”

South Korea has already issued the warant for Do Kwon’s arrest and released a ‘red notice’ for the whereabouts on him. South Korean police are searching for him continously, having started last year in September, they are now searching in Serbia as well.

The SEC stated that investors were left in the dark about the true processes happening behind the scenes of the company and that the price of the coin falling below its dollar peg “would spell doom for the entire Terraform ecosystem.” The SEC also expressed how Kwon / Terraform mislead people by stating that an electronic mobile payment app called Chai used the Terraform blockchain.

“Almost immediately upon UST’s recovery in May 2021, Terraform and Kwon began to make materially misleading statements about how UST’s peg to the dollar was restored. Specifically, Terraform and Kwon emphasized the purported effectiveness of the algorithm underlying UST in maintaining UST pegged to the dollar – misleadingly omitting the true cause of UST’s re-peg: the deliberate intervention by the U.S. Trading Firm to restore the peg,” the complaint by the SEC stated.

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Executive Assistant for KXCO. 4+ years in rigorous marketing positions. Experienced writer, and part time digital designer. Thorough experience in web design and SEO. Early crypto investor and enthusiast. Entrepreneurial mindset with a degree in Business Economics