SEC Charges Terra Founder Do Kwon for Fraud: Jury Finds Him Liable

The Securities and Exchange Commission (SEC) has been pursuing legal action against Do Kwon, the founder of Terraform Labs, alleging he orchestrated a massive fraud. The SEC today charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion dollar crypto scheme that left investors with significant losses.

In a significant development, A jury in New York has found Terra founder Do Kwon responsible for civil fraud charges. This verdict marks a major victory for the SEC and a blow to Kwon's defense against the allegations. After a two-week trial, the jury reached its verdict in federal court following the closing arguments. The outcome underscores the seriousness of the accusations leveled against Kwon and Terraform Labs.

The SEC's case against Do Kwon centers around claims that he misled investors about the stability and technology underlying TerraUSD (UST) and Luna (LUNA), two cryptocurrencies that collapsed dramatically in May 2022, wiping out billions of dollars in market value. The civil charges sought to hold Kwon accountable for these alleged misrepresentations and to recover funds for defrauded investors.

This verdict is a critical step in the ongoing legal battles surrounding the Terra/Luna collapse. While the jury has found Do Kwon liable for civil fraud, he still faces criminal charges in the United States and South Korea. The consequences of these charges could include significant financial penalties and potential imprisonment.

Stay tuned for further updates as this story develops. We will continue to report on the latest developments in the SEC's case against Do Kwon and Terraform Labs, as well as the broader implications for the cryptocurrency industry.