Terraform Labs and Founder Do Kwon Found Liable In US Civil Fraud Trial (reuters.com) 12
Terraform Labs and its founder Do Kwon have been found liable on civil fraud charges on Friday by a jury in Manhattan. The jury agreed with the SEC that the two misled investors before their stablecoin's 2022 collapse shocked crypto markets around the world. Reuters reports: The SEC accused the company and Kwon of misleading investors in 2021 about the stability of TerraUSD, a stablecoin designed to maintain a value of $1. The regulator also accused them of falsely claiming Terraform's blockchain was used in a popular Korean mobile payment app. SEC attorney Laura Meehan said during closing arguments that the platform's success story was "built on lies." "If you swing big and you miss, and you don't tell people that you came up short, that is fraud," Meehan said.
Louis Pellegrino, an attorney for Terraform, told the jury on Friday the SEC's case relied on statements taken out of context and that Terraform and Kwon had been truthful about their products and how they worked, even when they failed. "Terraform is still out there, trying to rebuild and make purchasers whole," he said. The regulator is seeking civil financial penalties and orders barring Kwon and Terraform from the securities industry. Kwon, who was arrested in Montenegro in March 2023, did not attend the trial, which began March 25. Both the U.S. and South Korea, where Kwon is a citizen, have sought his extradition on criminal charges.
Louis Pellegrino, an attorney for Terraform, told the jury on Friday the SEC's case relied on statements taken out of context and that Terraform and Kwon had been truthful about their products and how they worked, even when they failed. "Terraform is still out there, trying to rebuild and make purchasers whole," he said. The regulator is seeking civil financial penalties and orders barring Kwon and Terraform from the securities industry. Kwon, who was arrested in Montenegro in March 2023, did not attend the trial, which began March 25. Both the U.S. and South Korea, where Kwon is a citizen, have sought his extradition on criminal charges.
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Correction. When the illegal immigrants to Manhattan tricked the native people into selling them the place.
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No laws of the time forbid that immigration, so it's hella dumb to claim the buyers were illegal immigrants.
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Gosh, those Manhattan people must be 400 years old now! How did they live so long?
I don't have access to their health records and, frankly, it's completely improper of you to pry into them.
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When the people of Manhattan after tricking the locals into selling them the place accuse others of fraud... well they're on very shaky ground( pun intended).
The Dutch paid less for Manhattan than they believed it would later be worth . . . the same as every commercial deal ever. That land was divided and resold and divided and resold over and over for more money than the previous owners had thought it was worth - that's real estate!
Crypto is a Ponzi scheme, everybody knows that (Score:4, Insightful)
There is no inherent value. Just 1s and 0s on computer storage somewhere. Of course you are gambling when you "invest" in crypto. Ponzi schemes always fail eventually.
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There is no inherent value. Just 1s and 0s on computer storage somewhere. Of course you are gambling when you "invest" in crypto. Ponzi schemes always fail eventually.
Ponzi schemes do not mean "no inherent value." Nor do 1s and 0s mean no value. Any investment is inherently (used correctly) a gamble.
As for claims about always and eventually, nothing else you've said is true, so I choose to also doubt you are a psychic.
Stablecoin not so stable /s (Score:2)
You don't say (Score:3)
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A cryptocurrency exchange boss shown to be nothing but a crook. Color me surprised - not: what should be evident by now is that cryptocurrency trading is a powerful magnet for crooks and criminals.
To most people, crypto is indistinguishable from any other latest tech fad: overhyped and thronging with investors who claim to see the future.