Terraform Co-Founder Do Kwon Found Liable for Civil Fraud

Terraform and its co-founder Do Kwon were found liable on Friday for civil fraud charges in a case brought by the Securities and Exchange Commission last year. Coinage reported that both parties made closing arguments in the morning and jury deliberations began on Friday afternoon. The trial lasted two weeks. The SEC charged Terraform and Kwon in February 2023 in connection with the algorithmic stablecoin Terra USD, which dramatically collapsed a year ago. The agency said that Singapore-based Terraform and Kwon raised billions of dollars from investors by "offering and selling a suite of interrelated crypto asset securities, many of which were unregistered transactions." Algorithmic stablecoins, such as terra USD (UST), use market incentives through algorithms to maintain stable prices. Terra maintains price stability through its association with the governance token luna. UST collapsed in May 2022, resulting in losses of more than $50 billion. (The Block)