In New York, they are going to start a trial in the Terraform Labs case

The Manhattan District Court will consider the merits of the charges of the U.S. Securities and Exchange Commission (SEC) against the management of Terraform Labs. The trial will be held in absentia.

In New York, they are going to start a trial in the Terraform Labs case

The SEC accuses the co-founder of the Do Kwon project and the company controlled by him of deceiving investors on the eve of the collapse, promising the safety of investing funds and the stability of the TerraUSD token.

The founder of Terraform Labs will not attend the court hearings, as the United States federal prosecutors failed to obtain the extradition of the accused from the Montenegrin authorities.

Investors in the Terra project have lost, according to the SEC, more than $40 billion. Terraform Labs failed to keep TerraUSD pegged to the US dollar in 2022. The SEC demands compensation for financial losses of investors, as well as the prohibition of Kwon and Terraform Labs from working in the securities industry.

The businessman and other top managers of Terraform Labs deny the charges and state that in order to substantiate the claims, SEC lawyers "creatively reworked the evidence base and took the facts out of context."

The day before, the court of Montenegro decided to release the co-founder of Terraform Labs Do Kwon from prison, confiscating his passport so that the businessman could not leave the country. Do Kwon's extradition to South Korea has also been postponed.


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