SEC Investigating Terraform Labs Regarding Market Promotion

Jun 10,2022
KingData News: The U.S. Securities and Exchange Commission (SEC) is looking into whether Terraform Labs – the Singapore-registered firm that created the terraUSD (UST) stablecoin and luna (LUNA) token – violated U.S. laws regarding how it marketed the crypto coins, Bloomberg reported Thursday, citing a person familiar with the matter. (CoinDesk)
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.
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