Terra founder Do Kwon has sued the Securities and Exchange Commission (SEC) for illegal outreach and going against its own procedures, a lawsuit filed on Oct 22 with the United States District Court of South New York shows. The founder of the Terra, Mirror and LUNA coin was served with subpoenas in a questionable fashion by the regularity body of the United States in the Messari conference, last month. Terra’s Do Kwon has alleged that SEC served him, instead of his counsel or the legal team, failed to maintain confidentiality as it can hamper the ongoing investigation and causing unnecessary scene at the conference.
Lately, the SEC has turned towards different cryptocurrencies and blockchain protocols, to treat them as unregulated security. However, the agency has been criticized for its obscure methods of enforcement action, lack of clear policy and hampering the development of crypto economy in the United States. Terra’s complaint against SEC mentions that the subpoenas were served in a manner contrary to SEC’s own procedures, without jurisdiction and therefore are illegal under the law. The SEC is investigating the Terra founder Do Kwon for his role in the Mirror Protocol, which issues synthetic tokens.
Terra is a blockchain protocol that allows for mechanisms for minting stablecoins and ensuring their peg stability. The governance and utility on that platform is called LUNA and ranks in the top 100 cryptocurrencies by marketcap list. Terra’s current portfolio list includes UST (pegged to the United States Dollars), KRT (pegged to the South Korean Won), MNT (pegged to the Mongolian Tugrik), SDT (pegged to Special Drawing Rights of the International Monetary Fund). It has a sister protocol called Mirror, which is used to issue synthetic tokens, pegged to the price of the underlying.
You might also like