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SEC sues Terra founder Do Kwon

The U.S. Securities and Exchange Commission (SEC) accuses Do Kwon and Terraform Labs of fraud and unregistered securities trading.

By Mike Hesp
• 2 min read
SEC sues Terra founder Do Kwon

The U.S. Securities and Exchange Commission (SEC) has charged Do Kwon and Terraform Labs with fraud and unregistered securities trading.

The SEC has charged the company behind the collapsed TerraUSD stablecoin and its founder Do Kwon. "We allege that Terraform and Do Kwon failed to provide complete, fair, and truthful information to the public. This is especially true for LUNA and Terra USD," said SEC Chair Gary Gensler.

The SEC claims that Kwon and Terraform raised billions of customer funds through unauthorized trading of crypto assets, including the algorithmic stablecoin TerraUSD.

"It was just a fraud supported by a so-called algorithmic "stablecoin" - whose price was controlled by the accused, not by code," said the SEC.

After the stablecoin lost its peg to the U.S. dollar and the Terra ecosystem collapsed last May, Do Kwon went into hiding. Along with five other employees, he is being sought by international law enforcement agencies with an arrest warrant.

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