Terraform Labs on Trial for Fraud Amidst Do Kwon's Extradition Saga

The trial scrutinizes the alleged misleading of investors prior to the $40 billion collapse of TerraUSD.

Terraform Labs faces civil fraud trial over the 2022 collapse of TerraUSD stablecoin, with co-founder Do Kwon awaiting extradition.
The SEC accuses Terraform and Kwon of misleading investors about the stability of TerraUSD and its blockchain's use.
Kwon, arrested in Montenegro for using a fake passport, could be extradited to the U.S. or South Korea to face criminal charges.
The collapse of TerraUSD and Luna tokens resulted in a $40 billion loss for investors and impacted the wider crypto market.
The SEC seeks civil penalties and industry bans for Kwon and Terraform, while a judge ruled Terraform unlawfully sold digital assets.