U.S. SEC Chairman: The economic substance of a product determines whether it falls under the definition of a security in the securities law
ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) announced that Terraform Labs PTE, Ltd. and Do Kwon have agreed to pay over $4.5 billion.
SEC Chairman Gary Gensler stated, "This case reaffirms the repeatedly stated fact: the economic substance of a product, not its label, marketing, or hype, determines whether it is a security under the securities laws. The fraud committed by Terraform and Do Kwon serves as a reminder that when companies break the law, investors suffer."
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