New York jury finds Terraform Labs and Do Kwon on fraud charges in SEC case: Report

Jurors agreed with the SEC that Kwon and Terraform Labs, under his direction, deceived retail investors about the nature of the algorithm that supposedly pegged UST to the U.S. dollar. Mr. Kwon hinted that “automatic self-healing” was possible in the event of a depeg, but in reality, it relied on continuous trading activities, such as large-scale trading by institutional investors.