The U.S. Security Exchange Commission (SEC) strikes again. This time its Terraform labs and its CEO Do Kwon who have felt their wrath as they are now being investigated for fraud. Terraform Labs are most famous for being the creators of Terra Luna Classic (LUNC) and TerraUSD (USTC) crypto assets. However everything was going well (or looked like it was going well) until May 7th 2022 when the price fell from almost $1 all the way to $0.057 in just a few days evidently causing one of the worst crypto crashes in history. 

This crypto disaster then had a knock on effect causing LUNC to crash and burn with it. The price of LUNC fell from $68.25 to just above $1 in 4 days with it then falling to $0.0001147 within the 2 days after that. 

This cost crypto investors $60 Billion in value. Making it one of the worst crypto crashes in history. 

This brings me on to the one of the main reasons that Terraform Labs and its CEO Do Kwon are now being investigated for fraud. During the time before the USTC crash the SEC claims that to fix slight deviations from the $1 target price Do Kwon and Terraform Labs purposefully cooperated with a third party to buy massive sums of USTC to help fix the price to $1 giving the investors a false sense of security. This was also not told to the public and as a result the SEC are now investigating.

QUICK DISALIMER!!!

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