The Securities and Exchange Commission USA (sec) reported Thursday that it has accused cryptocurrency entrepreneur Do Kwon, and the company he co-founded, Terraform Labs, of “of orchestrating a multi-million dollar fraud.”
The collapse of Terraform Labs last year it struck down some $40 billion of investors and rocked global cryptocurrency markets.
South Korean prosecutors had already asked Interpol to issue a red notice against Kwon, alleging that he had refused to cooperate with their investigation into the company’s bankruptcy.
On Thursday, the SEC argued that between 2018 and 2022, Terraform and Kwon “raised billions of dollars from investors by offering and selling an interconnected set of crypto asset securities.”
“As alleged in our complaint, the Terraform ecosystem was neither decentralized nor financial,” said Gurbir Grewal of the SEC.
“It was simply a fraud propped up by a so-called ‘stablecoin’ (stable cryptocurrency) algorithm, the price of which was controlled by the defendants”he added.
Source: AFP
Source: Gestion
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