According to a statement from the U.S. Securities and Exchange Commission (SEC) on Friday, after nine days of trial, a jury in the Southern District of New York ruled that Terraform Labs PTE Ltd. and Do Kwon are responsible for cryptocurrency securities fraud. Previously, the court ruled that Terraform Labs and Kwon illegally issued and sold cryptocurrency securities, violating the registration requirements of the Securities Act of 1933.
The jurors agreed with the SEC’s argument that Kwon and Terraform Labs deceived ordinary investors in the nature of the algorithm that pegged UST to the U.S. dollar. Gurbir Grewal, the head of enforcement at the SEC, wrote in a statement, “We are pleased with the jury’s verdict today, which holds Terraform Labs and Do Kwon responsible for a massive cryptocurrency fraud.”
A spokesperson for Terraform Labs stated, “We are very disappointed with the verdict and believe it lacks evidence. We still believe that the SEC did not have the legal authority to bring this case, and we are carefully considering our options and next steps.”
Tags: Do Kwon, SEC, Terraform Labs
Source link:
https://www.coindesk.com/policy/2024/04/05/new-york-jury-finds-do-kwon-terrafo…
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