The United States Securities and Exchange Commission (SEC) has charged Terraform Labs founder Do Kwon for his actions during the Terra Luna collapse.
South Korea issued a warrant for Do Kwon’s arrest last year but his capture has yet to come to fruition.
The SEC charged Kwon for “orchestrating a multi-million dollar crypto” fraud.
SEC charges Do Kwon with fraud
On February 16 the United States Securities and Exchange Commission announced that they have charged Do Kown with fraud.
The SEC mentioned Luna’s algorithmic stablecoin and MIR (Mirror) tokens in their official statement.
The complaint further alleges that Terraform and Kwon offered and sold investors other means to invest in their crypto empire, including the crypto asset security tokens MIR – or “mirror” tokens – and LUNA itself.
Gary Gensler, Chair of the SEC said:
We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.
I commend the SEC’s hard-working staff who remained vigilant in such an important investigation, even when the defendants attempted to prevent us from obtaining important information about their business
Over the last 24 hours, the Terra Luna 2.0 token has fallen -6.5%. In 2022 South Korean authorities led a search for Do Kwon but news related to the investigation and Kwon’s whereabouts have since dwindled.
Many investors and those affected by the Terra Luna collapse are hoping that the SEC's collaboration with South Korean authorities will bring the long-running ordeal to an end.
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