After Binance And Ripple, Terra’s Do Kwon Under SEC Scrutiny! Here Are The Details

The post After Binance And Ripple, Terra’s Do Kwon Under SEC Scrutiny! Here Are The Details appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

The aftermath of Terra crash is gaining new grounds every day. Now, Terra creator Do Kwon and Terraform Labs (TFL) is directed by a judge to cooperate with an SEC investigation.

However, the investigation is not in relation to the current blockchain disaster. Instead, the SEC is examining whether Terra’s tokens are unlawful securities. It’s similar to a recent investigation into Binance and a long-running lawsuit against Ripple.

Warrant Issued Against Do Kwon In 2021

As per a source by legal news site Law360, the SEC probe began in September 2021, when the agency issued warrants on Kwon and TFL.

A judge stated earlier this week that Do Kwon cannot escape the inquiry. It’s because TFL is a South Korean company with consumers in the United States as well.

The SEC is especially looking at Terra’s Mirror Protocol, which permitted token exchange that was closely linked to the price of actual stocks. A string of vulnerabilities last month proved Mirror worthless, draining $92 million from the system.

Terra Staff Steals 80 Bitcoins ?

The next turn of events is Bitcoin stealing. Earlier on Tuesday, a Terraform Labs employee was detained by the Seoul Metropolitan Police Agency for stealing 80 bitcoin valued at almost $2.39 million.

When the prices of UST and LUNA plummeted in mid-May, Terraform Labs exchanged a considerable number of crypto assets.

Unfortunately, it is uncertain if Terra founder Do Kwon or other Terra staff were engaged in the stealing of assets. Terra and its staff are now being investigated by South Korean officials.

According to South Korea’s Yonhap News Agency, one of Terraform staff took 80 Bitcoin. It is worth almost $2.39 million and all this happened amidst the Terra’s UST and LUNA crash in May.

The authorities are presently investigating the details surrounding the incident. The employee appears to have manipulated the Luna Foundation Guard’s Bitcoin reserves. These are the same reserves that would guarantee the integrity of the UST stablecoin. 

Regrettably, because of the participation of international trade, getting a warrant requires time.