“This case confirms what court after court has said: a product’s economic substance, not its labeling, advertising or hype, determines whether it is a security under the securities laws,” SEC Chairman Gary Gensler said in a press release Thursday. “Terraform and Do Kwon’s fraudulent conduct caused investors to suffer devastating losses, in some cases their entire life savings. Their fraud serves as a reminder that investors suffer when companies fail to comply with the law. Terraform and Do Kwon resisted our efforts to investigate and took the fight over the investigative subpoena all the way to the Supreme Court. Thankfully, with this settlement, the victims of their massive fraud will now get some justice.”
