Manhattan jury finds Terraform Labs and its founder, Do Kwon, liable for civil fraud charges related to TerraUSD stability misrepresentation in 2021.
Manhattan jury found Terraform Labs, the Singapore-based company behind the TerraUSD stablecoin, and its founder Do Kwon liable for civil fraud charges. The US Securities and Exchange Commission accused Terraform Labs and Kwon of misleading investors about the stability of TerraUSD in 2021 and falsely claiming Terraform's blockchain was used in a popular Korean mobile payment app. The collapse of TerraUSD and its sister token Luna in May 2022 led to a sharp decline in the value of other cryptocurrencies, including bitcoin, and forced several companies to file for bankruptcy. The SEC is seeking civil financial penalties and barring Kwon and Terraform from the securities industry.
April 05, 2024
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