Terra and Founder Do Kwon Face Charges From SEC
- The US Securities and Exchange Commission has filed charges against Terra and its founder, Do Kwon.
- The delayed action has sparked controversy among those in the cryptocurrency world.
- Kwon is currently in hiding and Korean officials are searching for him in Serbia.
SEC’s Timing Arouses Suspicion
The United States Securities and Exchange Commission’s recent filing of charges against Terra and its founder, Do Kwon, has surprised many in the cryptocurrency world due to its delayed timing. The SEC has been actively cracking down on crypto-related businesses for months, yet it took close to a year for them to prosecute Kwon and his company. The delay is particularly puzzling given that Terra’s collapse caused millions of investors to lose their money and sparked a severe bear market that led to the failure of other cryptocurrency companies. Crypto influencer Bitboy Crypto has highlighted the suspicious timing of the prosecution. Additionally, the fact that the case only focuses on half of the wrongdoing raises concerns among those who expected the SEC to hold Terra accountable for all its actions.
The SEC announcement has resulted in many questioning their intentions regarding investor protection. Meanwhile, Kwon has been in hiding for several months as authorities froze hundreds of millions of dollars worth of crypto that allegedly belonged to him. Kwon claims that the funds are not his and that he has no idea what they are talking about. Despite rumors that he is on the run, he denies them categorically. Before Terra’s downfall, Kwon was well-known in the crypto world as a folk hero due to his sharp mind and charming personality; however, some criticized him for his arrogance towards others he considered “poor”. In light of these recent charges, Korean officials are now searching for Kwon in Serbia while members from within this community watch closely with suspicion over SEC actions.
Investor Losses Sparked by Collapse
When Terra collapsed it left millions of investors without their money which then sparked a bear market leading to other cryptocurrency companies failing too. This created an uproar among those waiting for justice from within this community especially when considering how long it took before any form legal action was taken – almost up until a year later! It is not yet known whether or not U.S investors will be protected through this case as there have been questions raised about whether or not this approach will result in enough restitution considering it only focuses on half of all wrongdoings committed by Kown’s company during this time period.