The CEO of Singapore-based Terraform Labs, has come into the eye of the US independent agency “US Securities and Exchange Commission” as the regulator believes that the CEO has been involved in money laundering activities.
After verifying the facts of transferring $80 million in LUNA and UST to his wallets every month, the CEO of Terraform Labs became a suspect in the investigation of the recent downfall of Terra’s collapse. The agency also believes that the blockchain service makes it possible to purchase US equities with Terra. The SEC is now investigating him for Securities Act violations.
The South Korean news agency Naver and JTBC reported:
“The US Securities and Exchange Commission recently conducted a remote video survey of some of Terra’s key designers and focused on inquiring about Terra’s poor design structure.”
This is not the first interaction of Kwon’s with the US SEC. The regulator looked into Terraform Lab’s Mirror Protocol project in 2021 and gave Do Kwon a subpoena at a conference in New York on September 20, 2021.
Attorney Philip Moustakis was quoted as saying:
“I don’t see how the SEC or CFTC could not investigate the ashes of UST and Luna as well as other stablecoins and their issuers. In fact, I expect some coordination between the two agencies in this regard.”
If the accusations that are being made against Kwon turn out to be true, the CEO of Terraform Lab could be sued in the United States.
The price of LUNA 2.0 has dropped 83.9 percent from it’s all-time high of $18.87. Despite the Terra chain’s relaunch, the prices of LUNA Classic (LUNC) and LUNA 2.0 have not recovered.
Analysts predict that the price of LUNA 2.0 will fall. Technical indicators indicate that a decline below $1.5, or 50% below the current price level, is possible in LUNA 2.0. The token’s transaction volume has decreased, and it can easily be seen that now investors are losing their interest in it.
