Another head of a previously popular cryptocurrency exchange is found guilty

The SEC’s civil complaint against Terraform Labs and its co-founder Do Kwonhas been heard in the United States. The company and Kwon were found guilty of luring and deceiving investors.

According to Gurbir Grewal, Director of the SEC’s Enforcement Practice, it took the jury of the District Court for the Southern District of New York very little time to deliberate on the civil case. Do Kwon and his company Terraform Labs were found guilty of fraud.

The trial itself was held in absentia, and Kwon remains in Montenegro while disputes over his extradition to the United States are pending.

«We are pleased with the jury’s verdict today regarding a large-scale cryptocurrency fraud. Terraform Labs and its former CEO Do Kwon deceived investors about the stability of crypto assets and the so-called algorithmic stablecoin Terra USD,» Grewal said.

The official once again emphasized the lack of registration of Terraform Labs with US regulators, which «led to extremely serious consequences» for investors.

During the trial, SEC lawyers called the platform a «house of cards». The court’s decision states that Kwon and Terraform Labs are guilty of six fraud charges.

The start of the trial against the Singaporean platform and Do Kwon was announced on March 25.