SEC Sues Over TerraUSD Stablecoin Issuance  

The SEC has announced that they are to sue Terraform Labs and Do Kwon over the TerraUSD “stablecoin” issuance, which was one of the most notorious implosions in the bear market in 2022.

 

There were many high-profile implosions in 2022, but the stablecoin backed by nothing but hot air was one of the most remarkable collapses of them all, since the fundamentals of the concept meant that as soon as confidence was lost in Kwon’s ability to back the stablecoin, it entered a death spiral in which the price fell by almost 100% within a matter of days.

 

This was one of the most significant implosions of the entire bear market, since the collapse of UST (which many, such as Raoul Pal, had been relying on for “risk-free yield”) sparked a domino effect that began a chain of toppling many large industry titans, whether they had exposure to the stablecoin directly or not.

 

Whilst some have claimed that Do Kwon’s handling of the debacle amounts to negligence, incompetence and hubris rather than malevolence (and therefore he ought not be treated nearly as badly as characters like Alex Mashinsky or Sam Bankman-Fried).

 

The significance of claiming that UST and LUNA constitute securities in their lawsuit is that Do Kwon may now also face penalties for issuing unregistered securities, which comes with a substantial fine in the US.

 

The news comes as the U.S. seeks to crack down on a range of different unregistered securities, with the SEC looking to provide investors with more clarity in terms of proper regulation. No doubt more alternative coins will be targeted by the SEC in the coming months.

 

---

 

Read More:

Luna Classic Price Prediction: Will Luna Classic Reach $1?

Pi Network Launch Date: When Will Pi Coin Enter The Market?

Is Pi Network Legit Or Scam: Pi Cryptocurrency Real Or Fake?

Will Pi Network Ever Launch? What Stage is Pi Network Now?

Pi Coin Price Prediction: Will Pi Ever Be Worth Money?

Core DAO Airdrop is Now Available, How to Claim It?

Will Shibarium Burn Remove 111 Trillion SHIB Annually?

HBAR Price Prediction 2025, 2030

ADA Cardano Price Prediction 2025, 2030

Wild Cash App by Hooked Protocol: Answer Quiz to Earn $HOOK

Moon Bitcoin Review – Your Best Chance to Get Free Bitcoins

Metamask Airdrop – To Get $MASK Token For Free?

Sofi Stock Price Prediction for 2023, 2025, 2030

Polygon MATIC Price Prediction 2023, 2025, 2030

Ethereum Price Prediction 2025-2030

Crypto Futures Trading: Everything You Need to Know

Bitcoin Futures Trading for Beginners

How to Buy Bitcoin in 2023? 

BTCC Review 2023

BTCC Discount: To Earn 3,500 USDT Deposit Bonus