According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) has accused cryptocurrency company Terra of fraud, resulting in a loss of $40 billion in investor assets. The case is the latest in a series of high-profile legal confrontations as U.S. prosecutors and regulators seek to exert greater control over the crypto industry. The SEC seeks a court order requiring Terraform and Kwon to pay civil penalties and repay the alleged disgorgement. SEC attorney Devon Staren said investors were deceived by Kwon's claims that Chai, a popular South Korean payments app, used Terraform's blockchain technology to process and settle cryptocurrency transactions. Terraform and Kwon also deceived investors regarding the stability of TerraUSD’s “anchor” to the U.S. dollar. Terraform denies the accusations and criticized the SEC for “treating every cryptocurrency company with unbridled enthusiasm.”

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