Terraform Labs and Co-Founder Do Kwon Found Guilty of Fraud in SEC Case Terraform Labs and its co-founder,
Do Kwon, have been found guilty of fraud in a civil case brought against them by the United States Securities and
Exchange Commission (SEC). The jury in the
U.S. District Court for the Southern District of New York delivered the verdict in federal court after a two-week trial after hearing closing arguments earlier in the day, according to an
official announcement. The SEC alleged that Terraform Labs and its former CEO, Kwon, deceived investors regarding the stability of their crypto asset security and algorithmic stablecoin called Terra USD. Furthermore, they were accused of misleading investors about whether
Terraform’s blockchain was used by a popular payment application for processing and
settling payments. “We are pleased with today’s jury verdict holding Terraform Labs and Do Kwon liable for a massive crypto fraud,” said SEC Enforcement Director Gurbir Grewal.
