Terraform founder Do Kwon found liable in SEC’s crypto fraud trial

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

The jury delivered the verdict in federal court after a two-week trial after hearing closing arguments earlier in the day.

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 $1. The regulator also accused them of falsely claiming Terraform’s blockchain was used in a popular Korean mobile payment app.

SEC attorney Laura Meehan said during closing arguments that the platform’s success story was “built on lies.”

Source: Terraform founder Do Kwon found liable in SEC’s crypto fraud trial