SEC Trial: US Jury Finds #DoKwon , #Terraform Labs Fraudulent

A US jury held Terraform Labs and co-founder Do Kwon responsible for civil fraud over the 2022 Terra ecosystem catastrophe, Bloomberg reported Friday. Do Kwon faces criminal charges in the US and South Korea for the unexpected collapse of the famous crypto project, which lost $40 billion in investor funds.

The SEC sued Terraform Labs and Do Kwon in February 2023 for organizing a multi-billion dollar crypto fraud involving the selling of several digital assets, including LUNA and Terra USD.

Bloomberg reports that a seven-person New York jury has found the defendants guilty of fraud in this federal case, bolstering the SEC's digital asset market crackdown.

Do Kwon and Terraform Lab said Chai, a major South Korean payment processing company, used the Terra blockchain network during the two-week experiment. The jury also found that the defendants misled investors about the soundness of the UST stablecoin, whose de-peg from the US Dollar caused the Terra ecosystem collapse.

In response, SEC enforcement director Gurbir Grewal emphasized the agency's goal for a cryptocurrency legal and regulatory framework.

Our team's hard work indicates that we will continue to utilize our powers to safeguard investors, but crypto markets must comply.

The SEC won liability claims against Kwon and Terraform after the New York Jury. Next, the securities watchdog wants a court ruling on civil fines, ill-gotten earnings, and prejudgment interests from the defendants.

Montenegrin Supreme Court Overturns Do Kwon's Extradition.
Another development: the Supreme Court of Montenegro reversed a lower court's extradition order for Do Kwon to South Korea. An appellate court rejected Kwon's legal team's appeal, prompting a petition by the Supreme State Prosecutor's Office of the Balkan country, alleging authority and procedural irregularities.

The Montenegrin Supreme Court sided with the Prosecutor's Office and reevaluated the US and South Korean extradition demands for the prominent crypto personality.

#LUNC #LUNA $LUNC