SEC Accuses Do Kwon and Terraform Labs of Misleading Stablecoin Claims Before Terra USD Collapse

SEC accused Terraform Labs and Do Kwon of misleading investors about the stability of the Terra USD stablecoin
Terra USD was supposed to maintain its dollar peg through algorithmic mint-and-burn mechanics
SEC argues the peg was actually maintained by trading from institutional investors, not an algorithm
Defense said investors knew ecosystem could collapse and it was victim of a short attack
Do Kwon did not attend trial as he remains in Montenegro fighting extradition to the US and South Korea