Do Kwon and Terraform Labs have been found liable in US civil fraud trial. Jury agreed with SEC that defendants misled investors before UST stablecoin collapse in 2022. Terraform spokesperson expressed disappointment, saying company would weigh its options. After a series of pursuits, Terraform Labs founder Do Kwon was arrested in Montenegro in March 2023.
” Grewal added that the commission was pleased with the verdict, highlighting, “It is high time for the crypto markets to come into compliance.” SEC charges against Kwon and Terraform Labs Do Kwon and Terraform Labs had been accused by the US Securities and Exchange Commission of misleading investors in 2021 about the stability of TerraUSD, the network’s stablecoin coined UST. TerraUSD was designed to maintain a value of 1:1 against the dollar.