Court hearing and verdict
Date: 2024-04-08 Author: Gabriel Deangelo Categories: IN WORLD
On April 5, 2024, a court hearing was held in New York, as a result of which Terraform Labs and its co-founder Do Kwon were found guilty of fraud and the collapse of the Terra ecosystem worth $40 billion.
Charges and closing arguments
The US Securities and Exchange Commission (SEC) has accused Do Kwon and his company of misrepresenting the stability of the Terra USD (UST) coin and various use cases for the Terra blockchain. The jury agreed with the prosecution's arguments after closing arguments were presented.
SEC Enforcement Director Gurbir Grewal expressed satisfaction with the verdict, noting the widespread fraud and losses caused to investors.
A Terraform Labs spokesman said he was disappointed with the verdict, claiming there was no hard evidence. He also argues that the SEC does not have the authority to bring the case.
Extradition and legal process
Do Kwon did not attend the court hearing due to the extradition process. The decision to extradite Do Kwon must be made by the head of the Ministry of Justice, while the Supreme Court of Montenegro overturned the decision to extradite him.
Plans to appeal the decision of the Supreme Court of Montenegro in their favor were expressed by the US authorities, who also brought charges against Do Kwon.
