Terraform and CEO Do Kwon Charged With Defrauding Investors a Multi-Billion Dollar by US SEC

The US Securities and Exchange Commission (SEC) has brought charges against Singapore-based Terraform Labs PTE Ltd and CEO Do Hyeong Kwon, alleging that they orchestrated a multi-billion dollar crypto securities fraud.

According to SEC Chair Gary Gensler, 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. Besides, they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors.

From April 2018 until the scheme’s collapse in May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions, based on the regulator's complaint.

Last June, Fazzaco reported that Terraform Labs and Do Kwon were sued by an Illinois resident ​over violating federal securities laws and misleading investors. In November 2021, SEC charged Terraform Labs and Do Kwon​, seeking an order directing them to comply with investigative subpoenas for documents and testimony.