Singapore Police and SEC launch investigation into Terra LUNA case

A statement from one of the victims filed with the police appeared on the Internet. It states that UST and LUNA are a financial pyramid, and investor losses are estimated at $32 billion.

The statement states:

Do Kwon and his network marketing policy spread information about the possibility of receiving 19% per annum from staking the UST stablecoin. Many influencers and “financial gurus” told their audience about the 100% reliability of purchasing UST and the opportunity to earn 19% per annum. 

Also:

When will we start punishing Singaporean financial bloggers for providing financial advice?

SEC investigation

There is every reason to investigate UST, lawyers say. The actual regulatory regime for stablecoins is still a work in progress. But that may not matter in the case of TerraUSD (UST), says a former SEC adviser.

The current SEC investigation into Terraform Labs and the Terra protocol's interactions with synthetic securities changes the basis for the SEC's involvement in such matters.

The Securities and Exchange Commission is likely already investigating what happened to UST over the past week, two former SEC lawyers said.

“The SEC is already acting as they investigate the Mirror Protocol,” said Philip Moustakis, who moved from the SEC's enforcement division to the law firm Seward & Kissel in 2019.

An SEC spokesman said: "The SEC does not comment on the presence or absence of a possible investigation." The regulator also declined to comment on TerraUSD.

The Mirror Protocol allowed trading of synthesized or “mirror” versions of American stocks such as Tesla and Apple in exchange for UST based on the Terra blockchain.

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