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Terra and Luna, the native cryptocurrencies that caused the crash last month.
The developer’s CEO, Kwon Do-hyeong, is on the line of investigation in Korea and the United States.
In particular, the SEC of the US Securities and Exchange Commission already started an investigation last year, and MBC obtained documents related to the SEC’s investigation, such as a job offer letter issued to CEO Kwon.
Reporter Yoon Sang-moon reported exclusively.
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This is a job offer letter sent by the SEC to Terraform Labs CEO Kwon Do-hyung in September of last year.
He orders them to appear by October 27, warning them that failure to comply may result in punishment.
The charges of violating the Securities Act were applied, including a kind of illegal transaction called ‘Mirror Protocol’.
A mirror meaning ‘mirror’.
In other words, they operated an exchange that made virtual stocks linked to the stock prices of American companies such as Apple and Netflix into products and bought and sold them with Terra.
[권도형/테라폼랩스 대표(작년 1월)]
“You can buy these synthetic stocks from anywhere in the world. You can trade them around the clock, with no time limits. You can trade anonymously, without revealing your identity.”
In the United States, financial products that track stock prices, such as ETFs and ELSs, are subject to the supervision of the SEC.
Therefore, the SEC stated that it was investigating whether CEO Kwon had violated the Securities Act, the Stock Exchange Act, and the Investment Company Act as an unauthorized transaction.
In July of last year, two months before the issuance of the job offer, I conducted a video investigation of CEO Kwon for 4 and a half hours.
CEO Kwon countered that he was not subject to the US investigation because he was Korean and Terraform Labs was also a Singaporean company.
However, the US court ruled that there was no problem with the SEC’s investigation in both the first and second trial.
They accepted the SEC’s claim that it has investigative powers, as about 15% of investors are Americans.
In particular, the SEC was revealed to have asked CEO Kwon Do-hyung to submit information on 27 items, including “Tera blockchain operator and owner” and “All Terra’s decision-making proposals,” so the investigation is expected to expand to the entire Terra operation.
Meanwhile, the Korean prosecutors, who are investigating the ‘Ponzi’ scam of CEO Kwon, who attracted investors with a high interest rate of close to 20% a year, recently imposed a departure ban on key Terraform Labs officials.
This is Sangmoon Yoon from MBC News.
Video Editing: Haeun Kim
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