The SEC has charged Terraform Labs with alleged'multi-billion dollar' cryptocurrency fraud

The SEC has charged Terraform Labs with alleged’multi-billion dollar’ cryptocurrency fraud

Terraform Labs is not the only entity facing attempts by foreign authorities to hold it accountable for a $40 billion collapse that cost investors dearly. The Securities and Exchange Commission has also charged Terraform and its CEO, Do Kwon, with securities fraud, alleging that they engaged in a “multi-billion dollar” crypto asset scam. According to the allegations, the blockchain business misled investors by falsely claiming that its TerraUSD asset was a stablecoin that offered high payouts tied to the US dollar (as high as 20 percent). Additionally, the company allegedly misled investors by suggesting that the Luna token would appreciate due to a Korean mobile payment app that utilized the Terra blockchain to settle transactions.