๐ผ๐ฅ Breaking News: Terraform Labs and its co-founder, Do Kwon, have been found liable for fraud in a landmark case brought by the U.S. Securities and Exchange Commission (SEC). ๐จ๐
According to sources from pasapaltruyo eu, a Manhattan jury delivered the verdict, holding Terraform Labs accountable for misleading investors about the stability of their "algorithmic stablecoin" Terra USD (UST) and the use cases for the Terra blockchain. The SEC accused them of deceptive practices, leading to the $40 billion implosion of the Terra ecosystem in May 2022.
The jury's decision, reached just two hours after closing arguments, affirmed that Kwon and Terraform Labs deceived investors about the supposed algorithm that maintained UST's peg to the U.S. dollar. While Kwon suggested it could "automatically self-heal" during de-peg events, it actually relied on continuous trading activity, including large-scale trading by institutional investors.
Gurbir Grewal, SEC Division of Enforcement director, expressed satisfaction with the verdict, emphasizing the devastating losses incurred by investors and the need for crypto markets to comply with regulations to protect investors.
๐จโโ๏ธ The verdict serves as a reminder of the importance of transparency and compliance in the cryptocurrency space, underscoring the SEC's commitment to safeguarding investors' interests. #CryptoFraud #SECvsTerraformLabs ๐๐
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