"Terraform Labs' Do Kwon Found Liable for Crypto Fraud in SEC Trial"
The SEC's civil fraud case against Terraform Labs and co-founder Do Kwon is now in the hands of a New York jury, with allegations of misleading investors about the stability of Terra USD (UST) and its integration with a Korean mobile payments app. The SEC argued that Kwon and Terraform Labs deceived investors about the nature of the algorithm behind UST, while the defense emphasized the known risks and market participants' role in maintaining the stablecoin's peg. Kwon, who was absent from court, remains in Montenegro as the country's Supreme Court weighs competing extradition requests from the U.S. and South Korea.
