Terraform Labs, Do Kwon Settle Fraud Lawsuit with SEC

IconCryptoNewsTerminal Staff30 May, 2024

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Terraform Labs, Do Kwon Settle Fraud Lawsuit with SEC

Terraform Labs, Do Kwon Settle SEC Fraud Lawsuit According to court documents cited by the Tronius X account, Terraform Labs and founder Do Kwon have reached an interim agreement with the U.S. Securities and Exchange Commission (SEC) regarding a fraud lawsuit. The SEC filed a civil lawsuit against Kwon and Terraform Labs in November 2022, alleging that they made misleading statements about the stability of their Terra cryptocurrency, leading to significant investor losses. The terms of the settlement are not yet known, but the SEC's complaint accused Terraform Labs and Kwon of failing to register Terra as a security, making false and misleading statements about its stability, and engaging in fraud and deceit. The SEC also alleged that Kwon sold Terra tokens while in possession of material, non-public information, and that he misled investors about the company's reserves. The settlement is a significant development in the ongoing legal battle over the collapse of the Terra ecosystem. It remains to be seen what the final terms of the settlement will be, but it is clear that the SEC is taking a tough stance against fraud and deception in the cryptocurrency market.

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