{"id":84418,"date":"2023-02-19T15:38:51","date_gmt":"2023-02-19T15:38:51","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud"},"modified":"2023-02-19T16:07:49","modified_gmt":"2023-02-19T16:07:49","slug":"us-charges-40bn-cryptocrash-boss-with-fraud","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud","title":{"rendered":"US charges $40bn cryptocrash boss with fraud"},"content":{"rendered":"

Africa-Press – Kenya. <\/strong><\/span>US financial regulators have charged failed South Korean cryptocurrency boss Do Kwon and his company Terrraform Labs with “orchestrating a multi-billion dollar crypto asset securities fraud”.<\/p>\n

The Singapore-based firm created the Terra Luna and TerraUSD tokens, which collapsed spectacularly last year.<\/p>\n

The collapse is estimated to have cost investors more than $40bn (\u00a333.5bn).<\/p>\n

Mr Kwon and Terraform Labs did not immediately respond to a BBC request for comment.<\/p>\n

“We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” US Securities and Exchange Commission (SEC) chairman Gary Gensler said in a statement.<\/p>\n

“We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses for investors,” he added.<\/p>\n

According to the SEC, Mr Kwon and his company raised billions of dollars from investors by selling them “an interconnected suite of crypto asset securities” with many transactions being unregistered.<\/p>\n

The SEC also alleged Mr Kwon and Terraform claimed repeatedly that the tokens would increase in value, and misled investors about the stability of TerraUSD.<\/p>\n

However, the value of the token and its linked Luna cryptocurrency plunged to close to zero in May last year.<\/p>\n

Globally, investors in TerraUSD and Luna lost an estimated $42bn, according to blockchain analytics firm Elliptic.<\/p>\n

It triggered a sell-off in major cryptocurrencies such as Bitcoin, Ethereum and Tether. As a result the term cryptocrash trended online.<\/p>\n

“I am heartbroken about the pain my invention has brought on all of you,” Mr Kwon said at the time.<\/p>\n

The SEC complaint, which included other allegations, did not state where Mr Kwon was located.<\/p>\n

In December, South Korean authorities, who have issued an arrest warrant for Mr Kwon, said they believed he was in Serbia.<\/p>\n

Mr Kwon had previously denied that he was in hiding, but did not reveal his whereabouts.<\/p>\n

“For any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide,” he said on Twitter.<\/p>\n

Mr Kwon faces charges of fraud and breaches of capital markets law in his home country of South Korea.<\/p>\n

For More News And Analysis About Kenya<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. US financial regulators have charged failed South Korean cryptocurrency boss Do Kwon and his company Terrraform Labs with “orchestrating a multi-billion dollar crypto asset securities fraud”. The Singapore-based firm created the Terra Luna and TerraUSD tokens, which collapsed spectacularly last year. The collapse is estimated to have cost investors more than $40bn […]<\/p>\n","protected":false},"author":84,"featured_media":84417,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,9],"tags":[6857,7003,544],"class_list":["post-84418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-miscellaneous","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nUS charges $40bn cryptocrash boss with fraud - kenya<\/title>\n<meta name=\"description\" content=\"US financial regulators have charged failed South Korean cryptocurrency boss Do Kwon and his company Terrraform Labs wit ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US charges $40bn cryptocrash boss with fraud\" \/>\n<meta property=\"og:description\" content=\"US financial regulators have charged failed South Korean cryptocurrency boss Do Kwon and his company Terrraform Labs wit ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-19T15:38:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-19T16:07:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/02\/postQueueImg_1676809368.35.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"670\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"US charges $40bn cryptocrash boss with fraud\",\"datePublished\":\"2023-02-19T15:38:51+00:00\",\"dateModified\":\"2023-02-19T16:07:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud\"},\"wordCount\":388,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/02\/postQueueImg_1676809368.35.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"miscellaneous\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/us-charges-40bn-cryptocrash-boss-with-fraud\",\"name\":\"US charges $40bn cryptocrash boss with fraud - 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