Coin Edition -
- SEC Chair Gary Gensler sends his support for SEC’s actions in his recent tweet.
- SEC charged Terraform Labs PTE Ltd and Do Hyeong Kwon with defrauding investors in crypto schemes.
- The Twitter community does not reciprocate well to SEC’s actions.
Securities Exchange Commission (SEC) Chairperson Gary Gensler commends the SEC’s recent lawsuit. The SEC charged Singapore-based Terraform Labs PTE Ltd and South Korean National Do Hyeong Kwon with defrauding investors in crypto schemes.
This case demonstrates the lengths to which some crypto firms will go to avoid complying with the securities laws, but it also demonstrates the strength and commitment of the SEC’s dedicated public servants. https://t.co/wLTa2M5P8k— Gary Gensler (@GaryGensler) February 16, 2023
In his latest tweet, Gensler is seen responding to the SEC’s latest case against Terraform Labs and Do Kwon. He goes on to rebuke crypto firms, saying, “This case demonstrates the lengths to which some crypto firms will go to avoid complying with the securities laws.”
Additionally, Gensler uses this opportunity to commend the SEC, expressing that the case demonstrates the strength and commitment of the SEC. Furthermore, he calls the SEC team, “dedicated public servants.”
Gensler has retweeted the SEC’s press release that explained the details of the charges. In it, the SEC states:
Today we charged Singapore-based Terraform Labs PTE Ltd. and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.
In the statement, the SEC argues that Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities. It also points out that many of these transactions were unregistered.
The document further explains that these transactions included mAssets, security-based swaps that can pay returns by mirroring the price of U.S. stocks. It was also alleged that Terra USD, a crypto asset security referred to as an algorithmic stablecoin, could be interchangeable with another of the defendants’ crypto asset securities, LUNA.
The complaint further alleges that the defendants offered and sold investors other means to invest, like mirror (MIR) tokens and LUNA itself. However, Gensler’s tweet was not well received among the crypto community.
He was asked why the SEC still left the meaning of “complying with securities laws” vague for the digital asset market and why there was no clarity for a clear registration path. Some chided Gensler stating that it was a little late to protect the investors that lost all their money as the SEC was tying up the investors capital indefinitely while blind siding the crypto entities.
Another Twitterati warned Gensler that the industry wasn’t filled with con-people and to stop treating the whole of crypto as such. If not, “every U.S. blockchain innovator will move to a different country, and the U.S. falls behind,” said the responder.
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