FILE PHOTO: Do Kwon, the cryptocurrency entrepreneur, who created the failed Terra stablecoin, is taken to court in handcuffs, to face charges of forging official documents, in Podgorica, Montenegro, March 24, 2023. REUTERS/Stevo Vasiljevic/File PhotoTerraform Labs and its founder Do Kwon are set to face trial on Monday in Manhattan on a regulator's claim that they lied to investors before the collapse of two of the company's cryptocurrencies, which roiled markets in 2022.
Federal prosecutors in New York have also charged Kwon with fraud and are seeking his extradition to the United States. Their collapse also dragged down the value of other cryptocurrencies, including bitcoin, and caused wider havoc in the crypto market, leading several companies to file for bankruptcy in 2022.
Kwon and Terraform have denied wrongdoing and said the SEC took statements by Kwon and other Terraform employees out of context.