The SEC could supposedly seek records of Luna Foundation Guard and Kwon's operations which are kept at the MAS.
The infamous co-founder of Terraform Labs has reportedly lost his bid against the US Securities and Exchange Commission (SEC). The latter is now allowed to seek records from the Monetary Authority of Singapore (MAS) that could shed more details on how the 31-year-old developer managed Luna Foundation Guard and whether he had a hand in last year’s LUNA/UST collapse.
Numerous agencies, watchdogs, and prosecutors alleged Kwon was the main culprit of the multi-billion crash. He remains under custody in Montenegro after the local authorities arrested him in March.
The SEC Strikes Again
The agency supposedly has records indicating how the Luna Foundation Guard (a non-profit organization behind the collapsed Terra ecosystem) was established and raised funds to keep the value of the algorithmic stablecoin – UST – at $1.
The asset lost its peg in May 2022 and plunged way below its price target. Since the native token was closely connected, users started minting more LUNA to stabilize the fallout. This created an infinite arbitrage loop, which eventually ended with both tokens’ prices going to zero.
Could Kwon Spend His Life in Prison?
He will most likely remain under custody in the Balkan nation for an extended period of 30 days before being extradited to the USA or South Korea. If found guilty in the States, he could face more than 100 years in prison, while the maximum penalty in his homeland would be “just” 40 years.