Terraform Labs, Do Kwon Found Liable for Fraud in $40 Billion Crypto Collapse

A jury found Terraform Labs and founder Do Kwon liable for civil fraud charges brought by the SEC.
The SEC accused them of misleading investors in 2021 about the stability of the TerraUSD stablecoin and its $1 peg.
The SEC said Kwon and Terraform secretly propped up TerraUSD's price in May 2021 when it slipped from its $1 peg.
Investors lost over $40 billion when TerraUSD depegged and Terraform tokens crashed in May 2022.
Kwon was arrested in Montenegro in March 2023 but did not attend the trial. He and Terraform face financial penalties and industry bars.