Do Kwon, the chief executive officer of the Singapore-based corporation, was the subject of subpoenas issued by the Securities and Exchange Commission (SEC). A federal appeals court in New York upheld the subpoenas.
The Securities and Exchange Commission is investigating whether or not a blockchain technology known as Terraform’s Mirror Protocol violates any laws. One such legislation is the one that states it is illegal to offer securities that have not been registered.
Mirror Protocol provides phony copies of US equities and ETFs that are listed on US exchanges, such as Tesla and the Ark Innovation ETF. These stocks and ETFs are traded in the US.
Terraform said that the SEC violated its own policies when it served subpoenas on Kwon while he was attending a crypto conference in New York. Kwon was at the time participating in the conference.