2024-04-06 22:04:52
Juror agrees with SEC that investors were deceived
SEC says, “Kwon’s success story is built on lies.”
Mr. Kwon’s side “Told the truth… Efforts to rehabilitate and restore buyers”
In a civil trial related to a complaint by the U.S. Securities and Exchange Commission (SEC), the jury held responsible Dohyung Kwon (32), CEO of Terraform Labs, a key figure in the collapse of the cryptocurrency Terra Luna.
According to CNBC on the 5th (local time), the jury in a civil trial held in Manhattan, New York, USA on this day agreed with the SEC’s opinion that Mr. Kwon deceived investors in 2022.
In a trial held in absentia, the jury heard Kwon’s final argument and returned a verdict after a two-week trial.
“The platform’s success story is built on a lie,” said SEC attorney Laura Meehan. “If you take a big swing and it misses and you don’t say you missed, it’s fraud.”
The SEC believes that Kwon misled investors about Terra’s stability. The SEC pointed out that Kwon and Terraform Labs deceived investors about the value of Terra by secretly entering into a large purchase agreement.
Regulators also accused Terraform Labs of falsely claiming that cryptocurrency was used in a popular Korean mobile payment app.
The SEC determined that Terraform Labs and Kwon deceived investors in 2021 regarding the stability of TerraUSD, a stablecoin designed to maintain the value of $1.
Luis Pelligrino, Kwon’s lawyer, said, “The SEC case relied on statements taken out of context. “Terraform and Mr. Kwon told the truth about how the product works even when they failed,” he said, adding, “Terraform is still trying to make buyers whole through rehabilitation.”
Terraform Labs previously claimed that the SEC filed the lawsuit with evidence that it adopted at its own discretion. In addition, Kwon’s logic is that he has never portrayed to investors that there is no risk of cryptocurrency.
In addition to the civil suit, Mr. Kwon is currently facing eight criminal charges, including product fraud, financial fraud, market manipulation, and securities fraud.
It is known that if the sentences for these charges are added together, Mr. Kwon could be sentenced to more than 100 years in prison in the United States.
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2024-04-06 22:04:52