SEC Sues Terraform Labs, Do Kwon for Misleading Investors on TerraUSD Stablecoin

“Terraform and Kwon additionally misled traders about one of the vital facets of Terraform’s providing – the steadiness of UST, the algorithmic ‘stablecoin’ purportedly pegged to the U.S. greenback,” the swimsuit stated. “UST’s value falling under its $1.00 ‘peg’ and never rapidly being restored by the algorithm would spell doom for your entire Terraform ecosystem, on condition that UST and LUNA had no reserve of belongings or some other backing.”