Tag: SEC

SEC Asks Court for Summary Judgement Against Do Kwon, Terraform

Terraform and Kwon also engaged in fraudulent conduct and made misleading statements, the SEC reiterated in the filing, re-emphasizing that they committed fraud by deceiving investors about the stability of UST, falsely crediting their algorithm for its price stabilization while secretly arranging third-party intervention, making their claims about the algorithm’s efficiency misleading and materially omitting crucial information. Terra collapsed in May last year, destroying billions of dollars in investor wealth. Source

PayPal faces SEC action related to PYUSD stablecoin: Report

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Payment giant PayPal has received a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin. The Enforcement division of the SEC has sent a subpoena to PayPal related to its PayPal USD (PYUSD) stablecoin, the firm disclosed on Nov. 2, according to a report by Reuters. The action comes about three months after PayPal launched its PYUSD stablecoin in early August. The stablecoin is issued by Paxos Trust and backed by U.S. dollar deposits, short-term Treasurys and similar cash equivalents. PYUSD is based on…

SEC charges SafeMoon and founders with crypto securities fraud 

SafeMoon and executive team members, like Kyle Nagy, were indicted in the Eastern District of New York in connection to an international multi-million dollar fraud scheme. On Nov. 1, the U.S. Securities and Exchange Commission (SEC) charged Braden John Karony, Kyle Nagy and Thomas Smith with conspiracy, fraud and money laundering over their involvement in SafeMoon. According to the SEC, the token was offered as unregistered crypto asset securities. The three stand accused of using their roles as founder, CEO, and CTO respectively to inflate SafeMoon toward a $5.7 billion…

SafeMoon Executives Face DOJ Arrests And SEC Charges

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The US Securities and Exchange Commission (SEC) recently announced charges against SafeMoon, its creator Kyle Nagy, the company’s CEO, John Karony, and CTO, Thomas Smith.  The SEC alleges that these individuals orchestrated a “massive fraudulent scheme” involving the unregistered sale of SafeMoon (SFM), a “crypto asset security” as defined by the SEC.  Per the complaint, instead of delivering the promised profits and taking the token “Safely to the Moon,” the defendants allegedly wiped out billions in market capitalization, misappropriated investor funds, and withdrew over $200 million in crypto assets for personal…

SEC Charges SafeMoon Team With Fraud, Offering Unregistered Crypto Securities

“Unregistered offerings lack the disclosures and accountability that the law demands, and they attract scammers like Kyle Nagy, who use these vulnerabilities to enrich themselves at the expense of others,” said David Hirsch, Chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit (CACU), referring to SafeMoon creator Nagy. The agency also accused CEO John Karony and Chief Technology Officer Thomas Smith in the fraud. Source

GAO finds controversial SEC guidance is subject to congressional oversight

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United States Senator Cynthia Lummis has scored another one for crypto with a Government Accountability Office (GAO) decision issued on Oct. 31. The GAO found that Securities and Exchange Commission (SEC) Staff Accounting Bulletin 121 should be subject to congressional review. That bulletin, issued in March 2022, has been a source of ire for many pro-crypto lawmakers. The GAO was acting on a letter sent by Lummis to the U.S. Comptroller General in August 2022. It considered whether the bulletin was a rule subject to the Congressional Review Act (CRA).…