SEC agency action on Terra blockchain creator company and its CEO
The United States Securities and Exchange Commission (SEC) is going to start a battle against Terraform Labs and its CEO.
In the present time, US regulators are doing their best to prohibit and restrict the illicit and unfair suspicious activities of the crypto market. For instance, the SEC agency is trying at their best to prove the allegations against the Ripple firm to manipulate the price of XRP token and sell unregistered XRP securities against the boundaries of the right. Now the SEC agency is ready to fight against Terraform Labs.
The filing of the SEC agency against Terra Labs was done on 12 November. Filing is against Terraform Labs PTE, Ltd., and its co-founder and CEO, Do Kwon.
Sec’ filing against the Terra Labs CEO is a legal pressure on the company to give all the processing demands based on records of the company that were not yet provided by the company.
The action of the SEC agency against Terra Labs is a part of the investigation against the Mirror Protocol,
Mirror Protocol is a synthetic asset protocol that allows users to trade “assets” — tokens with prices equal to stocks traded on U.S. soil.
Through the filing, the SEC authority claimed that there are chances that Terra Labs and its CEO were involved in the “creation, promotion, and offer to sell assets and MIR tokens to U.S. investors.”
“The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws”
SEC efforts towards better ecosystem
United States regulators are trying their best to make the crypto market more clear and better for their citizens. From time to time they take their strict action with full clarity and transparency to prohibit all suspicious operations that are going in the crypto market in between the crypto companies.
Here the case of Terra Labs is not new because earlier this Terra Lab CEO filed a case against SEC agency and claimed through his legal lawyer that “the delivery of the subpoena by SEC agency was illegal because Kwon was served the subpoena in public”.
Terra Labs CEO also said that it is much of a surprise that they are in communication with the SEC agency regarding the Mirror Protocol.
Terra Lab CEO tried to explain indirectly that they have no connection with the Mirror Protocol operations.
Read also: Coinbase wants Single Crypto Regulator over 53 Regulators in the US
