/cdn.vox-cdn.com/uploads/chorus_asset/file/24939160/tsm_roster.png)
/cdn.vox-cdn.com/uploads/chorus_asset/file/10329943/jbareham_180301_2346_nintendo_switch_0034_splatoon.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24931350/236792_iPhone_15_Pro_and_15_Pro_Max_product_photos_AJohnson_0006.jpg)
Terraform Labs, the creator of Cosmos, has been charged with misleading investors in a securities fraud scheme. The company’s CEO, Do Kwon, has been charged alongside Terrraform’s chief marketing officer, Greg Osuri, and several other executives. The charges allege that Terraform made false statements about its revenue and business operations, and misled investors about the company’s financial health.
The US Securities and Exchange Commission (SEC) has filed a civil lawsuit against Terraform and its executives. The lawsuit alleges that the company raised $75 million in a private securities offering by making false statements to investors. The SEC further alleges that Terraform misrepresented its user base and falsely claimed that it had secured partnerships with major companies like Amazon, Uber, and BMW.
The charges against Terraform and its executives come at a time when regulators are cracking down on fraud and misconduct in the cryptocurrency industry. Earlier this year, the SEC filed a lawsuit against Ripple Labs, alleging that the company had violated securities laws by selling unregistered digital assets. The SEC has also taken action against other cryptocurrency firms, including Telegram and Kik.
In response to the charges, Terraform Labs issued a statement on Twitter saying that it was aware of the SEC’s lawsuit and would be cooperating with the authorities. The company also said that it remained committed to its mission of building a decentralized internet and would continue to work to fulfill its obligations to its stakeholders.
The charges against Terraform and its executives highlight the perils of investing in cryptocurrencies and other emerging technologies. While these industries hold the promise of disrupting traditional business models and creating new opportunities for investors, they also attract bad actors who seek to exploit the hype and make a quick buck. As regulators step up their enforcement efforts, it is likely that we will see more cases like this in the future. Investors must be vigilant and do their due diligence before investing in any new technology, and must be prepared to face the risks that come with investing in emerging markets.
Source link
