$LUNC SEC official description

Terraform Labs PTE Ltd. and Statement on the Jury Verdict in the Do Kwon Trial

Gurbir S.Grewal

Director, Enforcement Office

April 5, 2024

Today, after a nine-day trial, a jury in the United States District Court for the Southern District of New York indicted Terraform Labs PTE Ltd. and found Do Kwon responsible for defrauding investors in crypto asset securities. Previously, the Court found that Terraform Labs and Kwon unlawfully offered and sold cryptoasset securities in violation of the registration provisions of the Securities Act of 1933.

Statement from SEC Enforcement Division Director Gurbir S. Grewal:

“We are pleased with today's jury verdict holding Terraform Labs and Do Kwon liable for a massive crypto fraud. Terraform Labs and its former CEO Kwon deceived investors about the security and stability of the crypto asset called Terraform USD and also misled investors about whether a popular payment app was using Terraform's blockchain to process and settle payments. With these scams, the defendants caused devastating losses for investors and wiped out tens of billions of dollars in market value almost overnight. Despite all the promises of cryptocurrency, the lack of registration and compliance has very serious consequences for real people. "As our team's hard work demonstrates, we will continue to use the tools at our disposal to protect the investing public, but it is time for crypto markets to align."