The civil trial between the U.S. Securities and Exchange Commission and Terraform Labs entered its tenth day without the attendance of Do Kwon.
As the trial between Terraform Labs and the United States Securities and Exchange Commission (SEC) approaches the finish line, attorneys alleged the crypto firm made several false claims regarding the platform to investors.
According to an April 5 Reuters report, SEC lawyers said in U.S. District Court for the Southern District of New York that Terraform’s story was “built on lies,” which included the stability of algorithmic stablecoin TerraUSD (UST) and an integration with a South Korean payment app. Terraform attorney Louis Pellegrino reportedly claimed co-founder Do Kwon had been truthful in public statements, and the SEC’s case relied on information taken out of context.
The civil trial with the SEC came more than a year after the commission filed a lawsuit against Terraform in February 2023. The regulator alleged at the time that the platform and Kwon “orchestrat[ed] a multi-billion dollar crypto asset securities fraud.”
