According to an official announcement, the US SEC announced a subpoena enforcement action against Terra development company Terraform Labs and its co-founder and CEO Do Kwon, requiring Terra to comply with investigation subpoenas related to documents and testimony. In addition, it is investigating whether Terraform Labs and Do Kwon violated Federal securities law rules, including unregistered securities sales, unregistered brokers or dealers, and unlisted investment companies engaged in securities transactions. However, the SEC is currently continuing its fact-finding investigation, and so far, it has not concluded that any individual or entity violated the federal securities laws.
According to the SEC, based on the current investigation, there is reason to believe that Terraform Labs and Do Kwon have promoted, sold, and distributed mAssets and MIR tokens to US investors. Accordingly, the application will further seek a court order, and after a ruling occurs, Terraform Labs and Do Kwon will have to fully comply with the subpoena requirements.
Source: US SEC
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