Terraform’s Do Kwon got served with a subpoena by the SEC at the Messari Mainnet cryptocurrency conference in New York as we are reading more about it in our latest crypto news today.
Crypto Twitter was wild last month after a speaker at the Messari Mainnet cryptocurrency conference in New York was served with a subpoena by an SEC representative, as witness Slava Rubin from Indiegogo noted. The reports showed that Terraform’s Do Kwon was the one that got the subpoena and according to the court filing, Do will sue the regulator over the subpoena. The Subpoena filed by the Terraform labs and Do against the SEC claimed that these subpoenas were improperly issued and served while adding that the agency failed to keep the investigation into the mirror protocol of the platform confidential. Do deny receiving the subpoena at first.
lol I just witnessed a guy get served by the SEC at the top of the escalator at #mainnet2021 right before going on stage for his panel
— Slava Rubin (@gogoSlava) September 20, 2021
Terraform Labs is running the algorithmic stablecoin Terra which keeps the peg to the dollar via the mechanism that destroys the secondary currency LUNA which is the 12th biggest crypto by market cap. The SEC is concerned about stablecoins so the related Terraform Labs project garnered the attention for its Mirror Protocol. Launched back in 2020, Mirror is a platform for creating synthetic versions of stocks and these assets are like stablecoins but they mirror the price of stocks instead of crypto so rather than purchasing shares in Tesla, you can buy in mTSLA.
When Mirror was launched, Do note that its utility of the assets creates a way for retail investors across the world to take part in the US equities market. However, if the retail investors in the US were allowed to use the platform as they can with Terraform will be acquired to register the product with the SEC because the stocks are securities or tradeable investment contracts. There’s no record of Terraform registering its assets with the SEC. The spokesperson clarified that he is not certain whether the process server was the agency while he heard another man saying “You are being served by the SEC” but the identity of the recipient was unknown at first.
Speculation around the subpoena recipient brought even more attention to the event as the attendees wondered what the SEC has in store. Mainnet attendees joked about whether the SEC had a room at the Marriot hotel near the conference and Messari CEO Ryan Selkis said:
“We have invited congressional staffers and regulators to this event, we would have comped many of their passes, and they choose to hide by the escalators instead of learning about what’s actually going on in the industry.”