SEC: Do Kwon and Terraform Need to Be Restrained Or They Will Continue to Violate the Securities Act

FIRST CLAIM FOR RELIEF

(Fraud in the Offer of Sale of Securities (Violation of Section 17(a) of the Securities Act))

173. The Commission realleges and incorporates by reference herein the allegations in paragraphs 1 through 172.

174. Defendants, in the offer or sale of securities, by the use of means or instrumentalities of transportation or communication in interstate commerce or by use of the mails, directly or indirectly: (1) knowingly or recklessly employed devices, schemes, or artifices to defraud; (2) knowingly, recklessly, or negligently obtained money or property by means of untrue statements of material fact or by omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (3) knowingly, recklessly, or negligently engaged in transactions, practices, or courses of business which operated or would operate as a fraud or deceit upon the purchaser.

175. By their conduct described above, Defendants violated, and unless restrained and enjoined will continue to violate, Securities Act Section 17(a), 15 U.S.C. § 77q(a).