"Terraform Labs and Founder Do Kwon Found Liable in US Civil Fraud Trial"

A jury in Manhattan found Terraform Labs and its founder Do Kwon liable on civil fraud charges, agreeing with the U.S. Securities and Exchange Commission's allegations that they misled investors about the stability of TerraUSD, a stablecoin, and falsely claimed Terraform's blockchain was used in a popular Korean mobile payment app. The SEC estimated that investors lost over $40 billion when the TerraUSD peg to the dollar could not be maintained in May 2022. The SEC is seeking civil financial penalties and orders barring Kwon and Terraform from the securities industry, and the judge will consider penalties in the coming weeks. Terraform filed for bankruptcy protection in January, and both the United States and South Korea have sought Kwon's extradition on criminal charges.