SEC Investigate Terraforms Labs, Do Kwon Files Court Appeal

Terra LUNA diselidiki SEC. (e-bitco)

JAKARTA - The fall in the price of LUNA is still a topic that is often discussed. This incident is rumored to have claimed several victims, such as a suicide attempt by several people. In addition, the founder, Do Kwon also has to face legal proceedings that are unavoidable.

Recently, the American Securities and Exchange Commission or SEC is conducting an investigation into Terraform Labs, the blockchain developer from Terra (LUNA). The SEC is investigating whether the developer violated the rules on investor protection after the incident.

The SEC is conducting an ongoing investigation of the Mirror Protocol, a protocol that runs on the Terra (LUNA) network. They are investigating whether the protocol violates United States securities laws.

However, Do Kwon claimed not to know if the SEC investigated Terraform Labs. This led him to decide to sue the SEC for violating the rules regarding improper subpoenas.

Wednesday, June 8, 2022, Do Kwon failed to appeal the SEC's subpoena while investigating the Mirror Protocol. He also said that the SEC's jurisdiction and investigation was limited because Terraform Labs was founded in South Korea.

However, in the second stage, the court stated that the SEC's subpoena was valid. The court urged Terraform Labs to cooperate with existing regulators. Not only that, the legal problems faced by Do Kwon also increased due to several investigations conducted by the SEC.

The incident of LUNA's fall that befell Do Kwon seems to have caught the attention of the South Korean government. The South Korean authorities cannot turn a blind eye to this fact. In order to avoid this, they are tightening control over cryptocurrencies.

Reporting from U.Today, the South Korean government is currently focusing on failed cryptocurrency projects such as LUNA. The authorities are also investigating one of the employees suspected of embezzling money. Another Terraform Labs founder, Daniel Shin, gets a lot of accusations if he commits fraud. However, he dismissed the accusations, saying the company never intended to deceive users.