{"id":9743,"date":"2024-04-06T05:56:02","date_gmt":"2024-04-06T05:56:02","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/us-jury-finds-do-kwon-terraform-labs-liable-for-fraud-in-sec-trial\/"},"modified":"2024-04-06T05:56:02","modified_gmt":"2024-04-06T05:56:02","slug":"us-jury-finds-do-kwon-terraform-labs-liable-for-fraud-in-sec-trial","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/us-jury-finds-do-kwon-terraform-labs-liable-for-fraud-in-sec-trial\/","title":{"rendered":"US Jury Finds Do Kwon, Terraform Labs Liable For Fraud In SEC Trial"},"content":{"rendered":"

According to a Friday report<\/a> by Bloomberg, a\u00a0 United States jury found Terraform Labs and its co-founder Do Kwon liable for civil fraud over the crash of the Terra ecosystem in 2022. This development comes as Do Kwon continues to battle criminal cases in the US and South Korea over the sudden collapse of the popular crypto project, which resulted in a $40 billion loss of investor assets.\n<\/p>\n

<\/span>SEC Wins Liability Suit Against Terraform Labs<\/span><\/h2>\n

In February 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and Do Kwon for orchestrating a multi-billion dollar crypto scam involving the sale of multiple digital assets, especially LUNA and the algorithmic stablecoin Terra USD (UST).<\/p>\n

Based on Bloomberg’s latest report, a seven-man jury in New York has now deemed the defendants liable for fraud in this government case, thus providing the SEC with a boost in its ongoing crackdown on the digital asset industry.<\/p>\n

While the trial lasted for two weeks, the jury deliberations on Friday revealed that Do Kwon and Terraform Lab purported that Chai, a prominent South Korean payment processing platform, was a user of the Terra blockchain network.\u00a0Furthermore, the jury also concluded that the defendants deceived investors on the stability of the UST stablecoin, whose de-peg from the US Dollar was a critical event in the Terra ecosystem collapse.\u00a0<\/p>\n

Commenting on this development, the SEC\u2019s enforcement director, Gurbir Grewal, reiterated the agency\u2019s desire for a cryptocurrency legal, and regulatory framework.\u00a0<\/p>\n

Grewal said:<\/p>\n

\n

As the hard work of our team shows, we will continue to use the tools at our disposal to protect the investing public, but it is high time for the crypto markets to come into compliance.<\/p>\n<\/blockquote>\n

Following the conclusions of the New York Jury, the SEC has now won claims of liability against Kwon and Terraform. Thereafter, the securities watchdog is now seeking a court order on civil penalties against the defendants and the recovery of ill-gotten gains and payment of prejudgment interests.\n<\/p>\n

<\/span>Montenegrin Apex Court Reverses Do Kwon\u2019s Extradition Order<\/span><\/h2>\n

In other news, the Supreme Court of Montenegro has overturned the extradition order of Do Kwon to South Korea by a lower court.\u00a0This development came following a petition<\/a> by the Supreme State Prosecutor\u2019s Office of the Balkan nation which highlighted a breach of authority and procedural violations in the rejection of an appeal from Kwon\u2019s legal team by an appellate court.<\/p>\n

Following deliberations, the Montenegrin Apex Court has now ruled in favor of the Prosecutor\u2019s Office and ordered a reevaluation of the extradition requests of the US and South Korea for the popular crypto figure.\u00a0<\/p>\n

Do Kwon was arrested in March 2023 by local Montenegrin authorities for traveling with falsified documents. Since then, the \u201chighly wanted\u201d Terraform co-founder has been the subject of an extradition contest between both countries who are pressing criminal charges over the crash of the Terra blockchain project.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to a Friday report by Bloomberg, a\u00a0 United States jury found Terraform Labs and its co-founder Do Kwon liable for civil fraud over the crash of the Terra ecosystem in 2022. This development comes as Do Kwon continues to battle criminal cases in the US and South Korea over the sudden collapse of the […]<\/p>\n","protected":false},"author":1,"featured_media":9744,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"US Jury Finds Do Kwon, Terraform Labs Liable For Fraud In SEC Trial - Bitrabo","description":"According to a Friday report by Bloomberg, a\u00a0 United States jury found Terraform Labs and its co-founder Do Kwon liable for civil fraud over the crash of the Te"},"footnotes":""},"categories":[316],"tags":[1154,696,3178,1642,1988,3179,520,1987,1935],"class_list":["post-9743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-finds","tag-fraud","tag-jury","tag-kwon","tag-labs","tag-liable","tag-sec","tag-terraform","tag-trial"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/9743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=9743"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/9743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/9744"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=9743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=9743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=9743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}