2022 Crypto Crash: Fugitive CEO Found Liable for Fraud

A jury in Manhattan found former crypto CEO Do Kwon and his firm Terraform Labs liable on civil fraud charges, agreeing with the US SEC that they misled investors before the 2022 collapse of their cryptocurrency, causing widespread market havoc. Kwon, who has been detained in Montenegro since March 2023, faces extradition requests from both the US and South Korea. The SEC seeks civil financial penalties and orders barring Kwon and Terraform from the securities industry. The collapse of TerraUSD and Luna tokens led to over $40bn in investor losses and bankruptcy filings, prompting US financial regulators to crack down on shady crypto practices.