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SEC Sues Over TerraUSD Stablecoin That Rocked Crypto

  • Lawsuit asserts turf for Wall Street’s main regulator
  • Agency alleges company and co-founder Kwon misled investors
Bloomberg business news
Crypto Crackdown: Regulators Focus More on Stablecoin
Updated on

The US Securities and Exchange Commission accused crypto entrepreneur Do Kwon and the firm he co-founded of a fraud involving the failed TerraUSD stablecoin.

The SEC alleged in federal court on Thursday that Terraform Labs and Kwon offered and sold unregistered securities, including the stablecoin, and carried out a scheme that wiped out at least $40 billion worth of market value. The case marks a significant escalation in the SEC’s crackdown on the crypto industry.