The US Securities and Exchange Commission (SEC) has filed a lawsuit against Terraform Labs (the company behind Terra’s blockchain design) and its co-founder and CEO Do Kwon. The US Securities and Exchange Commission is seeking to order Kwon to comply with a series of subpoenas that he failed to resolve.Testimony for investigating the right to seek subpoenas and document production by Terraform Laboratories

SEC takes action against Terraform Labs and Do Kwon

The US Securities and Exchange Commission (SEC) has taken the next step in the battle with Terraform Labs (the company behind Terra) and its co-founder and CEO Do Kwon.According to the lawsuit, the U.S. Securities and Exchange Commission has Archive It was intended to force the company to comply with a series of subpoena orders issued by the SEC to Kwon, but he could not resolve it. According to the document, these subpoenas include petitions for Kwon to testify and documents provided by Terraform Labs.

These actions are part of the ongoing investigation by the US Securities and Exchange Commission on the mirroring agreement, which is a synthetic asset agreement that allows users to trade “assets”-tokens whose prices are equivalent to stocks traded in the United States. The SEC stated that it has reason to believe that Terraform Labs and Do Kwon “participated in the creation, promotion and proposal of selling massets and MIR tokens to US investors.”

This would violate U.S. federal law, sell or issue securities without registration, and act as an unlicensed securities broker. However, the document states:

The SEC is continuing its fact-finding investigation. So far, it has not concluded that any individual or entity violated the federal securities laws.

Do Kwon’s lawsuit is still ongoing

The subpoena served and its related factors are also questioned litigation Initiated by Do Kwon. These documents were provided to him when he attended the mainnet meeting in Messari in the country. According to Kwon’s legal counsel, this subpoena is illegal because Kwon served the subpoena in public.

This violated the SEC’s policy that these procedures must be completed in a confidential manner, and many assistants witnessed the delivery. Kwon’s document stated that he had been in conversations with the SEC regarding the mirroring agreement for some time, and he was surprised by these actions.

What do you think of this new action taken by the SEC against Do Kwon and Terraform Labs? Tell us in the comments section below.

Image Source: Shutterstock, Pixabay, Wikimedia Commons