Terraform Labs and its founder Do Kwon have been accused of cryptocurrency fraud by the SEC

Do Kwon

On Thursday, the US Securities and Exchange Commission (SEC) brought charges against Singapore-based company Terraform Labs and its founder, Do Kwon, for securities fraud and multibillion-dollar cryptocurrency scams.

The charges come almost a year after the collapse of the Terra Luna and Terra USD (UST) tokens, which resulted in a loss of over $30 billion.

According to the SEC, Terraform and Do Kwon deceived investors on multiple fronts, including promises of token profitability, payment processing procedures on their platforms, and the stability of the crashed algorithmic stablecoin UST.

The UST collapse was the root cause of the May Terra drop, where the token sharply fell from $1 and never recovered. Does Kwon reportedly go into hiding following the crash, which is also under investigation by South Korean authorities?

Terraform Labs, a company based in Singapore, and its founder, Do Kwon, have accused the SEC of securities fraud and misleading investors. This comes nearly a year after the tokens for Terra's Luna and UST crashed, resulting in a loss of over $30 billion.

According to the SEC, Terraform and Do Kwon deceived investors on multiple fronts, including the expected returns on their tokens, the order of payment processing on their platforms, and the stability of the UST stablecoin, which ultimately crashed.

The decline of Terra began in May when the UST token plummeted from $1 and failed to recover. Following the crash, Do Kwon reportedly went into hiding and was also investigated by South Korean authorities. The complaint states that Terraform lied about the Korean payment app Chai, which used the Terra blockchain to process transactions.

The lawsuit also alleges that Do Kwon made false statements