SEC charges Terraform Labs over alleged 'multi-biillion dollar' crypto fraud<p>It's not just international police trying to hold Terraform Labs accountable for a collapse that t<a data-i13n="cpos:1;pos:1" href="
https://www.engadget.com/interpol-red-notice-terraform-founder-do-kwon-104327535.html">ook $40 billion from investors[/url]. The Securities and Exchange Commission has <a data-i13n="cpos:2;pos:1" href="
https://www.sec.gov/news/press-release/2023-32">charged[/url] Terraform and its CEO Do Kwon with securities fraud for allegedly running a "multi-billion dollar" crypto asset scheme. The blockchain startup purportedly misled investors by falsely claiming that its TerraUSD asset was<a data-i13n="cpos:3;pos:1" href="
https://www.engadget.com/binance-sued-over-collapse-terrausd-113503082.html"> a stablecoin[/url] pegged to the US dollar, with high yields (up to 20 percent). The firm also fooled people by claiming its Luna token would gain value thanks to a Korean mobile payment app that used the Terra blockchain to settle transactions.</p><p>Terraform and Do Kwon didn't provide "full, fair and truthful disclosure" for their crypto asset securities, SEC chair Gary Gensler says. The charges include registration and anti-fraud violations of the Securities Act and Exchange Act. </p><span id="end-legacy-contents"></span><p>TerraUSD and Luna lost their peg to the US dollar in May 2022, with the prices of both plunging to near-zero. Investors lodged complaints accusing Terraform and Kwon of running a Ponzi scheme, and the freefall contributed to the collapse of the crypto hedge fund Three Arrows Capital. The crypto exchange Binance quickly faced a lawsuit over claims it incorrectly marketed TerraUSD as a safe asset. While Kwon insisted that he wasn't evading capture, he left his native South Korea, refused to face investigators' questions and was put on Interpol's "red notice" list.</p><p>The SEC's charges join a string of efforts to crack down on reported fraud among some of the crypto industry's biggest names. Authorities have most notably pursued <a data-i13n="cpos:4;pos:1" href="
https://www.engadget.com/ftx-founder-sam-bankman-fried-pleads-not-guilty-195137532.html">FTX and its founder Sam Bankman-Fried[/url] over that exchange's downfall, while <a data-i13n="cpos:5;pos:1" href="
https://www.engadget.com/new-york-celsius-ceo-crypto-fraud-lawsuit-171421110.html">former Celsius Network chief Alex Mashinsky[/url] is also accused of defrauding investors. While crypto may still have a future, it's clear government bodies want <a data-i13n="cpos:6;pos:1" href="
https://www.engadget.com/house-republican-crypto-subcommittee-165521735.html">stricter enforcement[/url] of financial laws in this arena.</p>
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SEC charges Terraform Labs over alleged 'multi-biillion dollar' crypto fraud
