Terraform Labs Found Liable for $4 Billion Crypto Fraud in Landmark Jury Verdict

A jury found crypto entrepreneur Do Kwon and his company Terraform Labs liable for defrauding investors out of billions through the Terra/Luna crypto scheme.

Kwon and Terraform are accused of lying about the stability of their TerraUSD stablecoin and its ability to maintain its $1 peg.

The collapse of Terraform's tokens in May 2022 contributed to the downfall of several major crypto companies.

Kwon is currently in custody in Montenegro pending extradition on criminal fraud charges in South Korea and the U.S.

The case sets a precedent that crypto assets can be considered securities under U.S. law, allowing the SEC to exercise jurisdiction.