I s'pose if they are marketing in the US a 'horse has bolted from the stable coin', then SEC can crack the whip.
They should not have put US in the name (UST or TerraUSD or whatever they called it). Plus the US has an extradition treaty with South Korea.
I am sure there are hundreds of Chinese products with US in their name. Also US itself is not a copyrighted product. There are other countries who peg their currency to the dollar, yet... That itself is not illegal. I assume the real answer is if they do business in US jurisdiction so they have the ability to hurt US citizens. That is why some of the crypto brokers don't accept US citizens. As long as they screw the rest of the world, the SEC has no authority nor willingness to go after them.
Maybe. But it might be time to look at the history of trying to peg anything to anything else. England found it needed to match the interest rate policies of Germany to maintain the peg. Terra isn't/wasn't even close to matching any kind of interest rate, or borrowing rate policy of the Fed. And not nearly as strong as the Bank of England was when Soros broke it with borrowed funds. But it's going to propose the arbitrage of correlated assets completely unrelated to the USD? Yah, would not be surprised if fraud was found somewhere circling near the pretense of the algorithm. The SEC might have a case.
Why on earth should they not allow it to be traded? SEC = world police? It was a transparent ponzi and everyone could see it because it was very transparent. You could see how many assets they had to back it, how the mechanism worked, all of that to the last penny. If you actually paid attention, the short was a layup once UST lost the peg. The mechanism was shit, but if you did just a little bit of thinking you would have known. People were greedy and blinded by the marketing and the big name backers (who probably lost more than all those flimsy retail accounts). The best risk reward you can dream of. Short that thing at 96cts, your risk is well defined because it cannot get above 1$. If it goes to zero: boom 25$ reward per 1$ of risk. And now you sit there and complain? Are you fucking kidding me? You refused to take a free 100$ bill and now you guys sit there and complain about how it must have been a scam anyways. So pathetic. Do your freaking homework and start to exploit opportunities like this. And this, ladies and gentlemen, is the reason why retail will always pay the bills. They are fking lazy, greedy, dumb and not able to manage risk. And once they get sacked by guys that are just smarter and better, they start to complain and file lawsuits. The regulator comes in, makes new laws that makes it too expensive for the industry to come up with products that have actual alpha so all retail gets are shitty products that have so much negative edge that nobody but the issuer makes actual money. And that's where you guys end up with: ETFs that you cannot arb, because you need a license to take part in the creadtion/redemption proces, futures that you cannot trade because it takes a million dollar tech setup to compete and warrants that are so mispriced but you cannot short them because it's illegal. And then you sit there and stare at charts the entire day, draw lines or backtest yourself to death and end up with a lousy 10% return for the year although the index is up 80%. You suck, accept it and try to get better. Stop complaining. If you think something is trash and will go to zero put your money were your mouth is and fking short that thing instead of bitching about how that thing should not even be allowed. Stuff like this really makes me fuming. If you really thing you're good enough to step into the ring against Mike Tyson don't complain when he rips you a second a**hole. Godammit. Guys like @JackMorgan babble the entire day about how shit everything is, how other people screw things up, how this is a scam and that is a ponzi and who should go to jail. For once I want to read a post of guys like him discussing a successful raid on assets that they identified as shit. Equities taking a dumpster because FED screw up? Well short Yen, short bonds, short gold. Bitcoin going to zero? Why aren't you loaded to the brim with puts? Vol has more than doubled within three days and you could have made a killing. But that's the difference between a loser and a trader. The first one talks, the second one takes and manages risk