Toby Bochan
4/5/24
SEC wins case against crypto company “built on lies”
A New York jury has ruled in favor of the SEC in its case against Terraform Labs and its founder, Do Kwon, finding them liable for fraud for misleading investors to believe their “algorithmic stablecoin” UST was, well, stable when it turned out to be anything but.
Terraform Labs promised that its algorithm would keep the cryptocurrency pegged to the US dollar, only to experience a catastrophic fall in May 2022 that wiped almost all the value from its then $18 billion ecosystem in just days.
