Summary
TLDR: Terraform Labs and its co-founder, Do Kwon, found liable for civil fraud charges by the SEC due to misleading investors about the stability of algorithmic stablecoin UST. Terraform Labs hints at appealing the judgment. Do Kwon also facing separate criminal charges in the US and South Korea. Extradition proceedings for Kwon have hit roadblocks, with his final destination uncertain. Verdict could have implications for future regulatory approaches in the crypto market.
Key Points
1. Terraform Labs and its co-founder, Do Kwon, were found liable on civil fraud charges by a Manhattan jury on April 5, related to the failed algorithmic UST stablecoin.
2. The jury found that Terraform Labs and Do Kwon misled investors about the stability of the algorithmic stablecoin UST and falsely claimed that Chai, a Korean payment system, utilized its technology.
3. Despite the verdict, Terraform Labs hinted at a possible appeal, expressing disappointment with the decision and stating that they do not believe the evidence supports the guilty verdict.