Verdict: Terraform Labs and Founder Found Liable for Fraud Charges
A federal trial jury has ruled against the collapsed crypto company Terraform Labs and its founder Do Kwon in a fraud case brought by the U.S. Securities and Exchange Commission (SEC) in February last year.
According to the SEC allegations, Kwon and his company engaged in a fraudulent scheme between April 2018 and May 2022, resulting in significant losses for US retail and institutional investors through the offering and sale of crypto asset securities.
Revealing the Verdict
- The jury in the US District Court for the Southern District of New York recently confirmed the SEC’s accusations against Kwon and Terraform Labs.
- Following a nine-day trial, the jury found Kwon and Terraform Labs guilty of defrauding investors.
SEC’s Response
- Gurbir S. Grewal, the SEC Division of Enforcement Director, condemned the actions of Kwon and Terraform Labs for causing harm to investors.
- He stated that the deception regarding the stability of crypto asset security and Terra USD misled investors, ultimately impacting real people due to the lack of registration and compliance.
Kwon’s Legal Troubles
- Implications: Kwon was detained in Montenegro in March 2023 and faces criminal charges in South Korea relating to Terra’s collapse and Terra USD.
- Earlier Arrest: He was apprehended while trying to board a flight to the United Arab Emirates (UAE) using a fake Costa Rican passport.
Stay Updated
- Be in the Know: Subscribe to receive email alerts and keep abreast of the latest developments in the crypto world.
- Track Price Movements: Regularly monitor price action in the crypto markets to make informed decisions.
- Connect: Follow us on Twitter, Facebook, and Telegram for more crypto updates and insights.
- Explore More: Dive into The Daily Hodl Mix for a curated selection of crypto news and analysis.
Hot Take: Reflecting on the Verdict
A federal trial court jury has found collapsed crypto company Terraform Labs and its founder Do Kwon liable in the fraud charges brought by the U.S. Securities and Exchange Commission (SEC) in February last year.
According to the SEC, Kwon and his firm offered and sold crypto asset securities and carried out a fraudulent scheme between April 2018 and May 2022 that led to billions of dollars of losses to US retail and institutional investors.
On Friday, a jury in the US District Court for the Southern District of New York validated the SEC’s claims when it found Kwon and Terraform Labs liable for defrauding investors after a nine-day trial.
Gurbir S. Grewal, the SEC Division of Enforcement Director says the actions of Kwon and Terraform Labs have caused real harm to investors.
“Terraform Labs and Kwon, its former CEO, deceived investors about the stability of the crypto asset security and so-called algorithmic stablecoin Terra USD, and they further misled investors about whether a popular payment application used Terraform’s blockchain to process and settle payments.
For all of crypto’s promises, the lack of registration and compliance have very real consequences for real people.”
Kwon was initially arrested in Montenegro in March 2023 after attempting to board a flight to the United Arab Emirates (UAE) with a forged Costa Rican passport. He is also facing criminal charges in South Korea related to the multibillion-dollar downfall of Terra and its stablecoin Terra USD.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/BOTCookie/WindAwake
The post Jury Finds Do Kwon and Terraform Labs Liable for Defrauding Investors in Crypto Asset Securities appeared first on The Daily Hodl.
By
By
By
By
By
By