SEC Accuses Terraform Labs and Founder Do Kwon of Misleading Investors in $40B Crypto Collapse

Terraform Labs and founder Do Kwon built a "house of cards" stablecoin that collapsed in 2022, costing investors $40B, according to the SEC
The SEC accused Terraform of misleading investors about the stability of the TerraUSD stablecoin and its adoption
Terraform's lawyer says the SEC relies on cherry-picked evidence and testimony from witnesses seeking whistleblower payouts
Kwon designed the TerraUSD and Luna tokens that crashed in May 2022, dragging down crypto markets
Kwon was arrested in Montenegro in 2023 and faces extradition to South Korea and federal charges in the U.S.