Well, well, well…looks like the SEC busts has decided to rain on someone’s crypto parade. Apparently, Terraform Labs and its big boss man, Kwon Do-hyung, are in some hot water for their alleged multi-billion dollar crypto fraud scheme. Oopsie!
The SEC is accusing Terraform and Kwon of using some sneaky tactics to deceive investors and raise billions through an unauthorized offering of crypto asset securities, including the TerraUSD algorithmic stablecoin and mAssets that copy the price of U.S. stocks. Naughty, naughty!
Not only that, but the SEC is claiming that Terraform and Kwon pulled the wool over investors’ eyes by making false claims that the crypto tokens were backed by real assets. As it turns out, these tokens were created through an unregulated process and are not registered with thFe SEC. Yikes!
Alleged Fraudulent Scheme: Terraform Labs and CEO Kwon Do-hyung in Hot Water with SEC
And if that wasn’t enough, the SEC is alleging that Kwon pocketed a whole bunch of cash from this scheme by transferring funds raised from investors to his personal bank accounts. Talk about making it rain…in your own wallet!
It’s a little perplexing that it took the SEC busts a whole year to catch wind of this shadiness. But hey, at least they’re finally taking action. Better late than never, right?
So, if you’re planning on trying to pull off a similar crypto scam, take note: the SEC is watching, and they’re not afraid to rain on your parade. It’s all fun and games until someone gets charged with multi-billion dollar fraud.