Singapore-based Terraform Labs Found Liable for Fraud Charges

📆 4/6/2024 12:32 AM
📰 STForeignDesk

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Terraform Labs,Do Kwon,Fraud Charges

A jury in Manhattan found Singapore-based Terraform Labs and its founder Do Kwon liable on civil fraud charges on April 5, agreeing with the US Securities and Exchange Commission that they misled investors before their stablecoin’s 2022 collapse shocked cryptocurrency markets.

Do Kwon designed TerraUSD and Luna, a more traditional token that fluctuated in value but was closely linked to TerraUSD.

The SEC accused the company and Kwon of misleading investors in 2021 about the stability of TerraUSD, a stablecoin designed to maintain a value of US$1 . The regulator also accused them of falsely claiming Terraform’s blockchain was used in a popular Korean mobile payment app. Louis Pellegrino, an attorney for Terraform, told the jury on April 5 the SEC’s case relied on statements taken out of context and that Terraform and Kwon had been truthful about their products and how they worked, even when they failed.who was arrested in Montenegro in March 2023,

The SEC estimates investors lost more than US$40 billion on the two tokens combined when the TerraUSD peg to the dollar could not be maintained in May 2022.

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Terraform Labs' civil fraud trial set to begin in New YorkTerraform 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.The U.S.
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