Summary
TLDR: Kwon and Terraform Labs misled investors about the algorithm keeping UST pegged to the dollar, claiming it could self-heal but actually relied on continuous trading activity, including by institutional investors.
Key Points
1. Jurors found that Kwon and Terraform Labs misled everyday investors about the algorithm that maintained the peg of UST to the U.S. dollar.
2. Kwon implied that the algorithm could “automatically self-heal” in case of a de-peg, but in reality, it required continuous trading activity, including trades by institutional investors.
3. The deception led to a lack of transparency and potentially put investors at risk by not accurately representing how the peg was maintained.