The founder of the virtual currency 'Terra', which collapsed with a loss of over 5 trillion yen, was indicted for fraud, but he was escaping and missing

On February 16, 2023, the U.S. Securities and Exchange Commission (SEC) accused Terraform Labs, which operates the South Korean virtual currency project Terra (LUNA) , and its founder, CEO Do Kwon, for fraud. announced the indictment. However, Kwon has been missing since entering Serbia in December 2022, and the South Korean authorities have been wanted and are continuing the investigation. | SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes

SEC charges Do Kwon with fraud in connection with Terra collapse

Terra founder Do Kwon charged with fraud over its $40 billion crypto crash - The Verge

In May 2022, TerraUSD (UST), which was supposed to be a stablecoin whose price is linked to the dollar, crashed by 99.99%, and the virtual currency LUNA, which was the underlying asset of TerraUSD, fell to almost zero value. collapsed. After that, Terraform Labs newly started 'LUNA 2.0', but the price dropped significantly immediately after publication , and the price has not returned even at the time of writing the article.

What happened to the virtual currency 'Terra (LUNA)' whose price fell by 99.99% - GIGAZINE

In response to Terra's collapse, the SEC announced, ``Singapore-based Terraform Labs and Suspect Kwon have been charged with leading cryptocurrency securities fraud, including algorithmic stablecoins and other cryptocurrency securities.'' Did.

According to the complaint filed by the SEC with the court (PDF file) , the loss incurred by TerraUSD (UST) is at least $ 40 billion (5.37 trillion yen).

Kwon and others are accused of selling TerraUSD under the guise of a ``stablecoin that yields yield'' and advertising that they will pay interest of up to 20%, as well as misleading investors about its stability. I'm here. The SEC also accused LUNA of deceiving investors by repeatedly misleading them into thinking that LUNA would generate value by saying that South Korea's popular mobile payment app would trade on Terra's blockchain.

In response to these charges, Kwon denied in a tweet on February 1, 2023, ``I have never stolen money.'' Also, regarding his whereabouts, he previously said , ``I am not fugitive,'' but the SEC complaint states that ``current address is unknown.''

Kwon reportedly disappeared after an arrest warrant was issued in South Korea in September 2022. Based on information that Kwon entered Serbia in December, South Korean authorities visited the country and asked for cooperation in the investigation.

in Web Service, Posted by log1l_ks