WOO (woo) 
A recent court ruling in New York has found Terraform Labs and its Co-Founder, Do Kwon, guilty of misleading investors about the stability of UST, Terra’s stablecoin. The collapse of UST in 2022 resulted in a staggering $40 billion loss for investors and sent shockwaves through the cryptocurrency industry. This verdict, following a two-week trial, represents a significant victory for the SEC in its efforts to enhance regulation of the digital currency market.
The outcome of this case may also foreshadow the results of upcoming criminal trials against Kwon in the United States and South Korea, where the standards for proving guilt are more stringent. Kwon, who holds a 92% stake in Terraform, was apprehended in Montenegro for using a fake passport and now faces extradition to either the U.S. or South Korea, both of which have leveled criminal fraud charges against him. Recent developments, including a ruling by Montenegro’s Supreme Court, have increased the likelihood of Kwon’s extradition.
Following less than two hours of deliberation, the jury determined that Kwon and his company had made false statements regarding the utilization of Terraform’s blockchain technology by Chai, a popular payment app in Korea. The verdict also highlighted misleading claims about the stability of the UST stablecoin, which was supposed to maintain a steady value pegged to the U.S. dollar through algorithms.
For more insights, check out the latest update on Ethena’s USDe stablecoin, which has surpassed a $2 billion supply.
