Do Kwon, the founder of the crypto company Terra, has been charged with fraud by the US Securities and Exchange Commission (SEC) in connection with the company’s $40 billion crypto crash.

The SEC alleged that Do Kwon was involved in a fraudulent scheme involving Terra’s stablecoin, which was linked to the company’s native cryptocurrency, Terra. The SEC also charged Terraform Labs, a subsidiary of Terra, with fraud in connection with the collapse of Terra.

Do Kwon, who is a fugitive, is accused of violating the Securities Exchange Act of 1934, as well as the Investment Advisers Act of 1940. He is also accused of failing to register as a broker-dealer, and of making false and misleading statements to investors.

The SEC’s complaint alleges that Do Kwon and Terraform Labs misled investors and made false statements in order to raise money for Terra. The SEC also alleges that Do Kwon and Terraform Labs used the funds they raised to purchase Terra tokens and other cryptocurrencies at inflated prices.

The SEC is seeking disgorgement of all ill-gotten gains, as well as civil penalties and other relief.

Do Kwon is the latest in a string of high-profile individuals to be charged with securities fraud in connection with the cryptocurrency market. The SEC has been cracking down on fraud in the industry, and has charged numerous individuals and companies with violations of securities laws in recent months.