Holpop News

The U.S. Securities and Exchange Commission (SEC) has filed suit against Terraform Labs and its founder Do Kwon for “orchestrating a multibillion-dollar cryptocurrency securities fraud.”
The SEC said in a statement that Kwon and Terraform offered and sold “an interrelated set of crypto-asset securities, many of which were in unregistered transactions.”
In particular, the regulator cited the sale of the TerraClassicUSD (USTC) and Terra Luna Classic (LUNC) algorithmic stabelcoin.
SEC Chairman Gary Gensler stated that Do Kwon and Terraform “failed to provide the public with complete, accurate and truthful information” regarding USTC and LUNC.
“We also allege that they committed fraud by repeating false and misleading statements to gain credibility before inflicting devastating losses on investors,” the regulator said.
The SEC filed a complaint in the U.S. District Court for the Southern District of New York.