Terraform Labs and Co-founder Do Kwon Found Liable for $40 Billion Crypto Fraud

The verdict marks a significant development in the crackdown on cryptocurrency fraud, with investors losing billions in the TerraUSD collapse.

A jury in Manhattan found Terraform Labs and its co-founder, Do Kwon, liable for civil fraud charges related to the collapse of TerraUSD.
The SEC accused Terraform and Kwon of misleading investors about the stability of TerraUSD and the use of Terra blockchain.
Investors lost over $40 billion due to the implosion of TerraUSD and Luna, causing widespread havoc in the crypto market.
Kwon, who has been detained in Montenegro since March 2023, faces criminal charges in the US and South Korea.
The verdict is part of a broader crackdown on crypto fraud by US financial regulators, following the sentencing of ex-FTX CEO Sam Bankman-Fried.