[Blockchain Today Reporter Kim Jae-min] In a civil suit filed by the U.S. securities authorities against Kwon Do-hyung, CEO of Terraform Labs, a key figure in the cryptocurrency Terra Luna crash, the jury on the 5th (local time) ruled against Kwon and Terraform Labs. Yonhap News reported that the verdict was that the company acknowledged responsibility for deceiving investors.
According to reports, the jury at the Southern District of New York District Court acknowledged the plaintiff's claim that Mr. Kwon and Terraform Labs, co-founded by Mr. Kwon, caused huge losses to investors by deceiving them that the cryptocurrency Terra was safe.
In November 2021, the U.S. Securities and Exchange Commission (SEC) filed a civil suit against Kwon and Terraform Labs, claiming that they deceived investors regarding the stability of Terra and caused a large investment loss.
This trial is a civil trial, not a criminal trial, and civil trials can proceed without the defendant being present. Since Mr. Kwon is being detained in Montenegro, a situation has arisen in which the civil lawsuit proceeds before the criminal lawsuit.
The SEC requested the court to impose a large amount of compensation on Mr. Kwon and Terraform Labs and recover the illegal profits.
“We maintain that the SEC lacks legal authority to bring this lawsuit,” a Terraform Labs spokesperson said.
Meanwhile, the issue of Mr. Kwon's repatriation took another turn.
Previously, the Montenegro High Court decided to extradite Mr. Kwon to Korea, but on the 5th, the Supreme Court invalidated the decision to extradite him to Korea and sent it back to the original trial, increasing the possibility that Mr. Kwon's repatriation destination will be the United States.
kjm@blockchaintoday.co.kr
