SEC Victory
A US jury has ruled that Terraform Labs and its founder, Do Kwon, are liable for civil fraud in the collapse of the Terra ecosystem. The SEC filed a lawsuit against the company and Kwon in February 2023, alleging a multi-billion dollar crypto scam.
The jury found that Kwon and Terraform Labs:
- Falsely claimed that Chai, a South Korean payment platform, used the Terra blockchain.
- Misled investors about the stability of the UST stablecoin, which triggered the ecosystem’s collapse.
SEC’s Response
The SEC’s enforcement director, Gurbir Grewal, welcomed the verdict and reiterated the agency’s commitment to protecting investors. He called for the crypto industry to comply with regulations.
Montenegro Court Ruling
In a separate development, the Supreme Court of Montenegro has overturned a lower court’s order to extradite Do Kwon to South Korea. The court found that the lower court had violated authority and procedural rules.
Kwon was arrested in Montenegro in March 2023 for using falsified documents. He is now facing extradition requests from both the US and South Korea, which have filed criminal charges against him.
