Former SEC official explains why US SEC has authority to take action against Luna creator

Lisa Braganca explained the reason why the SEC agency dragged Luna coin creator Do Kwon under fraud charges.

Do Kwon is the founder of Terraform Labs. Terraform launched the Terra blockchain in 2018 with two native tokens, namely Luna coin & TerraUSD stablecoin. In May 2022, both the Terra tokens collapsed badly. Allegedly Kwon conducted a very big fraud in the crypto sector with the help of Luna coin & TerraUSD stablecoin. On 23 March 2023, Kwon was arrested by Montenegrian police, after several months ran. 

On 24 March 2023, Lisa Braganca, a former enforcement branch chief at the U.S. Securities and Exchange Commission (SEC), appeared in an interview with CoinDesk TV’s “First Mover” show. 

Lisa said that Kwon’ Terraform was not based under US jurisdiction but his crypto project was providing services in the US and targeting crypto Investors.

“They (Terra project team) were getting U.S. investment money, and frankly, they were targeting their pitch to U.S. investors,” Lisa said.

Just after the arrest news of Kwon, the New York federal prosecutors filed criminal charges against Kwon for Crypto fraud. 

So far, Kwon is facing multiple fraud charges under multiple jurisdictions. In Sep 2022, the South Korean prospectors issued an arrest warrant against Kwon. Singaporean enforcement agencies were also planning to arrest him and also they revoked Kwon’s passport but Kwon left Signapore for Serbia with the help of fake documents with fake identities.

This month, the United States Securities and Exchange Commission (SEC) also filed fraud charges against Kwon & Terraform Labs over misleading information about the Terra crypto project.

In the past, Kwon many times claimed that he was not on ran and also said that he was always ready to meet the corresponding government agencies to talk about the Terra collapse.

Read also: Ripple CTO again criticised the SEC agency badly