U.S. law enforcement has jurisdiction over Singapore-based Terraform Labs and its founder Do Kwon because they knowingly marketed their LUNA and terraUSD (UST) coins to U.S. investors, said Lisa Braganca, a former enforcement branch chief at the U.S. Securities and Exchange Commission.

“[The SEC’s] contention is that Do Kwon and these folks were reaching out to U.S. investors, whether they were based in the U.S. or not,” Braganca said. “They were getting U.S. investment money, and frankly, they were targeting their pitch to U.S. investors.”