SEC Sues Terraform Labs and Do Kwon for $B Crypto Fraud

• The US Securities and Exchange Commission (SEC) has sued Terra founder Do Kwon and his organization Terraform Labs for securities fraud.
• The SEC alleged that Kwon and Terraform Labs had promoted their cryptoassets by claiming that the tokens would increase in value.
• Do Kwon is believed to be in Serbia, but South Korean authorities have so far been unable to find him.

SEC Sues Terraform Labs & Do Kwon

The US Securities and Exchange Commission (SEC) has sued Terra founder Do Kwon and his organization Terraform Labs for securities fraud. They are accused of orchestrating a multi-billion dollar scheme between April 2018 and May 2022, involving unregistered transactions of crypto assets.

Promotion of Crypto Assets

The SEC alleged that Kwon and Terraform Labs had promoted their cryptoassets by repeatedly claiming that the tokens would increase in value, misleading investors about the stability of the algorithmic stablecoin TerraUSD (UST).

Community Reaction

The news of the lawsuit also reached the crypto community on Twitter, where several community members questioned the SEC’s actions. Alex Krüger, a popular crypto trader and economist, wondered why the SEC didn’t act sooner. Others also offered their takes, with some users asking how the SEC expects enforcement to work when Do Kwon and his organization are not based in the US but instead in Asia.

Do Kwon’s Unclear Whereabouts

Do Kwon is believed to be in Serbia, but South Korean authorities have so far been unable to find him.

Conclusion

Overall, this article focuses on recent allegations against Do Kwon and his organization for committing securities fraud involving an algorithmic stablecoin project called TerraUSD (UST). It also highlights reactions from both regulatory bodies as well as community members regarding these claims, along with describing Do Kwons current whereabouts which remain unknown at present time.