The United States SEC has charged Luna’s founder, Do Kwon, with billions of dollars in fraud. The authorities have alleged that the company have committed a multi-billion crypto asset securities fraud. They also said that Kwon raised billions of dollars in investment from multiple sources and built a suite of crypto-asset securities carrying out unregistered transactions.
Terra Luna founder faces fraud charges.
Luna and UST’s collapse was one of the largest crypto crashes in 2022. Do Kwon was at the centre of it and has been on the ropes for quite some time now. Finally, the US SEC has charged him and the company Terraform Labs Pte. Ltd. with fraud because they raised billions of dollars from investors and tried to create assets that mimic the value of US Stocks. They have also mentioned the stablecoin UST which was a failure.
The authorities that filed a case against Do Kwon also said that the founder claimed multiple times that the crypto assets he created would increase in value. And he created those to earn a profit himself. He was also responsible for misleading investors about the stability of the UST token, which burned billions of dollars in customer wealth in a few days.
The SEC has had their eyes set on the company for quite some time now. In 2021, they filed a case against the company for mirroring stock assets. An NYC judge had issued orders to the company to comply with SEC for investigations. Now, the SEC has made a statement that “We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto-asset securities, most notably for LUNA and Terra USD.”
About Do Kwon
Kwon was born in South Korea and later moved to the United States, where he attended college at UC Berkeley and later worked at Microsoft as a program manager. In 2013, Kwon left Microsoft to co-found Anyfi Networks, a peer-to-peer mesh networking startup.
In 2017, Kwon became interested in blockchain technology and began working on developing the Terra blockchain. Terra was a decentralised platform that used stablecoins to facilitate fast and low-cost transactions. The platform had its native cryptocurrency, called LUNA.
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Also Read: Charlie Munger calls buying crypto ‘stupid’ and ‘ridiculous.’
