According to PANews, Terraform Labs and DoKwon have been found guilty of cryptocurrency securities fraud by a jury in the Southern District Court of New York, following a nine-day trial. The court's decision comes after a previous ruling that Terraform Labs and Kwon had illegally issued and sold cryptocurrency securities, violating the registration provisions of the Securities Act of 1933.
The jury agreed with the U.S. Securities and Exchange Commission's (SEC) perspective that Kwon and Terraform Labs had deceived ordinary investors about the nature of the so-called algorithm that pegs UST to the dollar. The case marks a significant development in the ongoing scrutiny of cryptocurrency practices and regulations.