On Friday, Zack Guzmán, founder of Coinage Media, announced that Terraform Labs’ co-founder Do Kwon and his startup were deemed responsible for fraudulent activities in its legal battle against the U.S. Securities and Exchange Commission (SEC). The lawsuit spanned approximately two weeks. The trial culminated in the jury’s decision in a federal courtroom subsequent to the closing statements. Reuters, too, covered the news shortly after the verdict was publicized. In the coverage by Reuters, SEC lawyer Laura Meehan emphasized in her final argument that the blockchain platform’s purported achievements and prosperity were “built on lies.”
Terraform Labs and Former CEO Do Kwon Found Liable for Civil Fraud by Jury
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“If you swing big and you miss, and you don’t tell people that you came up short, that is fraud,” Meehan stated. Guzmán noted in his report that Terra issued a statement regarding the verdict:
“We are very disappointed with the verdict, which we do not believe is supported by the evidence. We continue to maintain that the SEC does not have the legal authority to bring this case at all, and we are carefully weighing our options and next steps.”
