Chairman of the U.S. SEC: The economic substance of a product determines whether it is a security under the Securities Act

CoinVoice has recently learned that the U.S. Securities and Exchange Commission (SEC) issued an announcement stating that Terraform Labs PTE, Ltd. and Do Kwon agreed to pay more than US$4.5 billion.

“This case confirms what has been reiterated time and again: it is the economic substance of a product, not the label, the pitch, or the hype, that determines whether it is a security under the securities laws,” said SEC Chairman Gary Gensler. “Terraform and Do Kwon’s fraud is a reminder that when companies break the law, investors suffer.” [Original link]