SEC Turns Up the Heat on Crypto in Probe of Terraform Labs
- Singapore-based firm offers tokens mirroring U.S.-traded stock
- SEC probing whether Terraform sells unregistered securities
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The U.S. Securities and Exchange Commission ratcheted up its investigation of Terraform Labs, a Singapore-based crypto firm that offers digital tokens mirroring U.S.-traded stocks, as it seeks to extend its control over the industry.
The SEC, which is looking into whether Terraform’s Mirror Protocol violates laws including the prohibition on selling unregistered securities, asked a judge on Friday to order the company and Chief Executive Officer Do Kwon to turn over documents and provide testimony. The agency said it is seeking to enforce investigative subpoenas after efforts broke down to get the material voluntarily.