Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
U.S. regulators are investigating whether Terraform Labs violated U.S. antitrust rules. investor protection with UST marketing.
- The SEC was already investigating Terra for its Mirror protocol.
- The regulator expands its efforts in the wake of UST’s collapse.
- Kwon allegedly funneled $80 million from Terra into his own wallet a place where cryptocurrency users can store, send and receive digital assets. each month.
Legal problems for Terraform Labs and its founder Do Kwon continue to grow.
According to a report by Bloomberg the U.S. Securities and Exchange Commission (SEC) is expanding its investigation into the company behind the ecosystem. Earth to learn more about their business practices. The news comes on the heels of the stablecoin implosion. TerraUSD (UST) last month, and of developments in another investigation by the regulator related to Earth .
The publication, which cited sources close refers to the closing price; similar to the same term used in stock trading. to the matter, revealed that the SEC’s Division of Enforcement is investigating whether or not Terraform Labs violated investor protection rules through the marketing of the products and the tokens LUNA and UST.
SEC investigates Terraform for UST collapse
The federal agency has been researching a Terraform and its CEO, Do Kwon, since late last year in connection with the alleged illegal sale of unregistered securities through the Mirror . Esa investigación busca conocer si la empresa violó la ley federal de valores cuando comercializó tokens that represent synthetic actions through this platform.
Kwon and his company were reluctant to the SEC’s subpoenas and filed suit, claiming, among other things, that the SEC lacked jurisdiction over Terraform based in Singapore. However, this week, a U.S. court ruled in favor of regulators and directed the director and his company to comply with SEC subpoenas . They are now required to cooperate with the agency by providing testimony and documents regarding the operation of Mirror Protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. .
The reports suggest that the SEC is expanding efforts around Earth but this time to learn more about the company’s operation after UST’s historic collapse.
Last month, UST, which was expected to maintain a stable price of USD $1, unpegged, wreaking havoc on LUNA. Both tokens completely lost their value. Terraform tried to re-launch his project, leaving behind the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. failed, creating a new token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. and renaming the original to Luna Classic (LUNC).
Today’s report suggests that one of the edges of the new line of investigation by the SEC es indagar si Terraform Labs may have violated investor protection provisions by falsely marketing UST as a stable currency currency is a medium of exchange that defines value. reliably pegged 1:1 to the U.S. dollar.
Kwon reportedly sent $80 million USD every month
Bloomberg wasn’t the only news outlet to report on the SEC’s latest efforts against Earth. The South Korean newspaper JTBC also reported that the U.S. Commission has launched an investigation into allegations of collapse.
“ The U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission recently conducted a remote video survey of some of Terra’s key designers and focused on asking about Terra’s flawed design structure. “reads the report, as quoted by Naver .
The media also added that the SEC has allegedly discovered that Do Kwon had been funneling nearly $80 million in funds from Terraform monthly before the collapse of UST and LUNA . The report, which claims to collect quotes from officials at the U.S. regulatory agency, said that “the U.S. government is not a “regulator. funds flowed into dozens of cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. wallets ” owned by Kwon.
Irregular fund movements have raised the SEC’s suspicions of money laundering on the part of Terraform Labs according to the report. It is worth noting that JTBC did not identify the sources or provide any evidence regarding its alleged information about the SEC investigation, as noted by the SEC.Crypto Briefing.
- Terraform Labs investigated for alleged Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. embezzlement in South Korea
- Terra’s Do Kwon Now Accused of Alleged Laundering Through South Korean Shell Company
- Did it crash? 5 days after its launch, Terra 2.0’s LUNA has lost almost 60% of its initial share price.
Article by Hannah Estefania Perez / DiarioBitcoin
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