2ND U.S. Circuit Orders Terraform Labs and Do Kwon to Comply With SEC Subpoena

Jun 09,2022
KingData News: The 2nd U.S. Circuit ordered Terraform Labs and its CEO Do Kwon to comply with SEC subpoenas. The SEC is investigating Terraform’s Mirror Protocol, which allows investors to create and trade digital assets pegged to U.S. securities prices. The SEC is seeking to determine whether Do Kwon or Terraform violated federal securities laws by creating, promoting, and selling digital assets.
This indicator provides follow-up on the depg of Terra's stablecoin UST on May 8th. Terra's stablecoin UST briefly lost its peg to the U.S. dollar on May 8th, dipping as low as $0.985. The depeg event came after a series of multi-million dollar UST selloffs as one account traded about $85 million worth of UST for USDC on Curve Finance, while another user reportedly sold $108 million worth on Binance. UST posted a slight recovery shortly after Terraform Labs CEO Do Kwon posted a tweet calling out the stablecoin's critics.