🚨⚠️The jury concluded that Do Kwon and Terraform Labs committed securities fraud
The jury found Do Kwon and his company, Terraform Labs, liable for securities fraud. The ruling, which came after a two-week civil trial, marks a significant victory for the US Securities and Exchange Commission in its efforts to regulate the cryptocurrency market.
The jury agreed with the SEC's claim that Kwon and Terraform Labs misled investors ahead of the collapse of their stablecoin in 2022, an event that sent shock waves through the cryptocurrency market death. Gurbir S. Grewal, Director of the SEC's Division of Enforcement, praised the ruling as a reminder of the consequences of operating without proper registration and compliance in the cryptocurrency space.
This ruling, along with the recent sentencing of FTX founder Sam Bankman-Fried, is seen by some analysts as a turning point for the industry, helping to draw the line in turbulent times and pave the way for better legal oversight and investor protection.