Terraform Labs and DoKwon Found Guilty of Cryptocurrency Securities Fraud

According to PANews, Terraform Labs and DoKwon have been found guilty of cryptocurrency securities fraud by a jury in the Southern District Court of New York, following a nine-day trial. The court's decision comes after previous rulings that Terraform Labs and Kwon had issued and sold cryptocurrency securities illegally, violating the registration provisions of the Securities Act of 1933.

The jury agreed with the US Securities and Exchange Commission (SEC) perspective that Kwon and Terraform Labs had deceived ordinary investors about the nature of the so-called algorithm that pegged UST to the dollar. This case marks a significant development in the ongoing scrutiny of cryptocurrency practices and regulations