According to BlockBeats news on April 6th, Terraform Labs and its founder Do Kwon were found guilty by a jury in a civil fraud case in the Manhattan federal court in the United States, as reported by Reuters. The US Securities and Exchange Commission (SEC) accused them of misleading investors before the stablecoin crash in 2022 that shocked the cryptocurrency market. The SEC claimed that they made misleading statements to investors about the stability of TerraUSD in 2021 and falsely claimed that Terraform's blockchain was used in a popular mobile payment app in South Korea. The judge will consider penalties in the coming weeks. A Terraform spokesperson said the company is disappointed with the ruling and claimed that the SEC had no right to bring this case.