Do Kwon, Terraform Labs found liable for misleading investors before UST stablecoin collapse

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Terra,Cryptocurrencies

The TerraUSD and Luna collapse provoked a cryptocurrency market crash in 2022, so bad that it sent multiple companies into bankruptcy that year.

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.

 

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New York jury deliberates SEC's fraud case against Terraform Labs and Do KwonA New York jury is deciding whether Terraform Labs and its co-founder Do Kwon are liable for allegedly misleading investors about the stability of Terra USD, an algorithmic stablecoin. The stablecoin was supposed to maintain a peg to the U.S. dollar but de-pegged in May 2022, causing a significant loss in market value.
Source: CoinDesk - 🏆 291. / 63 Read more »