New Decision from the US for Terra LUNA Founder Do Kwon: Found Responsible! - Coin Newsletter

The U.S. Securities and Exchange Commission (SEC) has found Terra (LUNA) founder Do Kwon guilty of fraud.

The SEC found Do Kwon, who had been detained in Montenegro for a long time, guilty of fraud. In court documents, he stated that Terraform and Do Kwon engaged in unregistered sale of securities through their products such as Terra and Terra USD (UST).

However, investors were given false statements about the stability and operation of these products, the SEC said, emphasizing that this also falls within the scope of fraud.

The SEC first indicted Terraform Labs and Kwon in February 2023 over the algorithmic stablecoin UST, which collapsed dramatically a year earlier. UST collapsed in May 2022, causing more than $50 billion in value.

A spokesperson for Terraform said they were **disappointed" by the jury's decision:

We are deeply disappointed with the decision, which we believe is not supported by evidence. We continue to argue that the SEC does not have the legal authority to bring this lawsuit, and we are carefully considering our options and next steps.

The U.S. and South Korea have been demanding Do Kwon's extradition for some time. But the Montenegrin court's string of rulings, which turned into a snake story, dragged on for too long. Kwon is still in pre-trial detention in Montenegro.