Terra Do Kwon Vs SEC: Defense To Give Final Arguments to Jury As Fraud Trial Ends
Highlights
- US SEC lawsuit against Terraform Labs and co-founder Do Kwon approaching the end of the jury trial.
- Attorneys representing Terraform Labs and co-founder Do Kwon are set to give final arguments to jury.
- Do Kwon didn't attend the jury trial as authorities prepare to extradite him to South Korea.
The U.S. Securities and Exchange Commission (SEC) lawsuit against Terraform Labs (Terra) and co-founder Do Kwon approaching the end of the jury trial. Defense attorneys from the world’s largest global law firm Dentons are going to give final arguments in the federal court today.
Jury Trial on Terra Vs SEC Reaches Final Stage
Attorneys representing Terraform Labs and co-founder Do Kwon are set to give their final arguments in front of the jury, reported Reuters on April 5.
The U.S. SEC accused Terraform Labs and Do Kwon of defrauding investors which caused the $60 billion Terra-LUNA crisis in 2022. The SEC alleges that Terraform misled investors about stability and TerraUSD (UST), an algorithmic stablecoin. Also, the SEC argues defendants falsely claimed Terra blockchain use in another co-founder Daniel Shin’s mobile payment app Chai Corp.
Defense attorneys argued that the SEC’s claims were out of context from wrong statements and relied on witnesses aimed to get whistleblower payouts if the SEC emerges victorious in the lawsuit.
The securities regulator seeks penalties, fines, and orders that TFL and Do Kwon violated securities laws. Meanwhile, Do Kwon didn’t attend the jury trial, which started on March 25, as Montenegro and South Korean authorities planned to extradite Do Kwon to South Korea.
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Judge Provides Jury Instructions
Judge Rakoff provided the jury with a brief overview of the US SEC lawsuit against Terraform Labs and Do Kwon. Also, the detailed jury instructions will replace earlier preliminary instructions after all evidence and closing arguments are presented by both parties.
The SEC during the lawsuit and jury trial mentioned how Do Kwon and Terraform Labs secretly transferred funds outside the company, used arrangements to prop up the prices of Terra and LUNA, and lied to its investors.
Brian Curran, the former head of communications at Terraform Labs, testified against Terra and disclosed the company’s misleading practices.
Also Read: Can Ethena Backing USDe With Bitcoin Crash Market Like Terra-LUNA?
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