The US Securities and Exchange Commission has filed a lawsuit against Do Kwon for fraud

The SEC's lawsuit affected the entire Terraform Labs company and its founder, Do Kwon.

At first glance, it may seem like a typical news story that everyone quickly understands. 

However, the phrasing of the alleged fraud is what is noteworthy. According to the SEC's own statements, the issue was not that Kwon misappropriated funds or provided false reports to investors, but instead that he "sold securities disguised as cryptocurrencies"! 

They're at it again :D. The company itself promised investors that the token would grow.

Here's what Gary Gensler had to say:

"We allege that Terraform and Do Kwon failed to provide complete and truthful information to the public about the assets they were selling, particularly LUNA and TerraUSD, as required for many crypto assets that are securities."

The initiative to accuse Terra after its bankruptcy, and the fact that half the civilised world is seeking its founder, is quite amusing, especially when this decision is being presented under the guise of "crypto-securities, blah blah blah."

At the same time, the Ripple case with the same SEC shows that it's a bit more challenging to compete and accuse a "live" company :D.