• The US Securities and Exchange Commission has filed a securities fraud lawsuit against do kwon, the co-founder and CEO of Terraform Labs.
• Do Kwon paid 9 billion won ($7 million) to Kim & Chang, a South Korean law firm, just before the collapse of the Terra ecosystem.
• Prosecutors believe this information can be used as evidence in the fraud case against do kwon.
Do Kwon and Terraform Labs
Do Kwon is a cryptocurrency developer who is the Co-Founder and Chief Executive Officer of Terraform Labs. With terraform labs, he also founded the telecommunication company Anyfi and served as its CEO, a peer-to-peer communication solution using mesh network technology. And eventually, in 2018, he founded Terraform Labs along with his friend Daniel Shine, intending to develop a decentralized price-stable cryptocurrency such as LUNA. He successfully led the Terra Blockchain by constantly developing new blockchain technologies, products, protocols, and platforms, including anchor, prism, and mirror. Through Terraform Labs, Do Kwon developed the Terra proof-of-stake, a public blockchain built on the Cosmos SDK. He is also the founder of another failed stablecoin project Basis Cash which was an Ethereum based token created by Nader Al Naji.
SEC Lawsuit Against Do Kwon
The designer of the Terra blockchain platform (which is no longer operational) has been targeted by the US Securities and Exchange Commission in a securities fraud lawsuit. The lawsuit claims that Do Kwon participated in a deceitful scheme that resulted in losses worth at least $40 billion in market value resulting into an issued warrant for his arrest by South Korea authorities due to these charges.
Do Kwon’s Payment To Law Firm
According to reports from South Korean prosecutors Kim & Chang law firm received 9 billion won ($7 million) from Do Kwon just before the collapse of their ecosystem . This payment was seen as an indication of his knowledge regarding upcoming troubles for their platform leading to legal issues for him personally too since it was viewed as preplanned action from his side .
Investigation Of These Transactions
These transactions are now being investigated further with it being seen as possible evidence towards proving him guilty for any frauds or schemes related to this case . If found guilty , there will be serious repercussions for both him & other persons involved due to their involvement in these fraudulent activities .
Conclusion
This article discussed about how SEC filed securities fraud lawsuit against Do Kwan , Co – Founder & CEO Of Tera form labs , which lead into issuance of warrant against him by South Korean Authorities .It also talked about payments made by him prior to collapse of their ecosystem which are being investigated further by prosecutors if they have any connection with fraudulent activities or not .