Trial Against Terraform Labs And Do Kwon Begins In NYC Following Prison Release
The United States Securities and Exchange Commission’s (SEC) trial against Terraform Labs founder Do Kwon is set to begin in Manhattan federal court Monday, though the former crypto tycoon will not be present.
The landmark civil trial stems from the SEC’s original complaint against Kwon in February 2023 over the dramatic May 2022 collapse of Terraform Labs’ TerraUSD “stablecoin,” which led to the loss of over $40 billion in market value.
“As alleged in our complaint, the Terraform ecosystem was neither decentralized, nor finance,” Director of the SEC’s Division of Enforcement, Gurbir S. Grewal, said in a statement at the time. “It was simply a fraud propped up by a so-called algorithmic “stablecoin” – the price of which was controlled by the defendants, not any code.”
Kwon stands accused of violating the registration and anti-fraud provisions of the Securities Act and the Exchange Act. Despite the high-profile nature of the crime, civil trials typically result in hefty monetary fees or injunctions as opposed to actual prison time for convicted defendants.
The start of Monday’s trial comes on the heels of Kwon’s Saturday release from a Montenegrin prison as the Balkan country’s Supreme Court debates his extradition location.
DO KWON PLACED IN "RECEPTION CENTER" IN MONTENEGRO AFTER PRISON RELEASE
Kwon was reportedly interrogated by a local inspector for five hours before being moved to the camp. He is expected to remain guarded in the facility until the local court makes a new decision on his… pic.twitter.com/c921NzFrMl
— Mario Nawfal’s Roundtable (@RoundtableSpace) March 25, 2024
Both the U.S. and Kwon’s native South Korea have been battling for his extradition, causing numerous international legal hurdles regarding the
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