USDe

Terra

Read

Ethena

The post <a href="https://coinpedia.org/news/terra-vs-sec-terraform-labs-presents-closing-arguments-in-civil-fraud-trial-amidst-allegations-of-investor-deception/" rel="noopener noreferrer nofollow">Terra vs SEC : Terraform Labs Presents Closing Arguments in Civil Fraud Trial Amidst Allegations of Investor Deception</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a>
The trial procedures on civil fraud against Terraform Labs and its founder <a href="https://coinpedia.org/news/terra-lawsuit-update-do-kwon-in-extradition-limbo-will-he-miss-his-sec-trial-date/" rel="noopener noreferrer nofollow">Do Kwon </a>are coming to an end as attorneys are gearing up to deliver their closing arguments.&nbsp;
The trial initiated and proceeded by the<a href="https://coinpedia.org/news/sec-calls-for-public-feedback-on-ethereum-etf-proposals-from-grayscale-fidelity-and-bitwise/" rel="noopener noreferrer nofollow"> U.S. Securities and Exchange Commission</a> focuses on accusations of wire fraud and scamming investors with TerraUSD, a stablecoin of Terraform’s blockchain technology.&nbsp;
<h2 class="wp-block-heading" id="h-allegations-by-the-sec">Allegations by the SEC</h2>
The SEC has alleged that the 2021 instability of TerraUSD, a coin specifically designed to maintain a $1 value, was a deliberate move made by&nbsp; Terraform and Do Kwon to mislead investors and perform wire fraud.&nbsp;
Additionally, the SEC has also accused them of falsely claiming that Terraform’s blockchain was integrated into a popular Korean mobile payment app.&nbsp;
The SEC’s case alleges that Terraform and Kwon engaged in deceptive practices, including orchestrating the purchase of TerraUSD to artificially inflate its price when it deviated from its peg to the dollar. Moreover, they are accused of falsely promoting Terraform’s blockchain as the backbone of transaction processing for the Chai payment app.
Also Check Out The : <a href="https://coinpedia.org/news/ethena-labs-bitcoin-backed-usde-sparks-concern-terra-luna-deja-vu/" rel="noopener noreferrer nofollow">Ethena Lab’s Bitcoin-Backed USDe Sparks Concern : Terra-LUNA Déjà Vu</a>
<h2 class="wp-block-heading" id="h-the-defence-pleads-innocent">The Defence Pleads Innocent</h2>
Defending themselves from the allegations, Terraform and Kwon’s defence team has contended throughout the trial that the SEC’s allegations are not based on strong grounds but on misinterpretations and unreliable witnesses seeking whistleblower payouts.&nbsp;
The defence denied allegations of intentionally deceiving their customers and emphasized the importance of context.&nbsp;
Kwon, who was arrested in Montenegro in 2023 over a fake passport, has been absent from the trial as he is currently under house detention, with restrictions on travel. Although both the U.S. and South Korea have sought his extradition on criminal charges related to the case, the Montenegrian Government has yet not given a final decision on which country to grant the extradition treaty.
The collapse of TerraUSD and Luna, another token closely linked to TerraUSD, resulted in significant losses for investors, estimated by the SEC to be over $40 billion. This collapse had broader implications, affecting the value of other cryptocurrencies and leading to bankruptcy filings by several companies in 2022.
Also Read : <a href="https://coinpedia.org/news/binance-burns-over-4-billion-terra-luna-classic-tokens/" rel="noopener noreferrer nofollow">Binance Burns Over 4 Billion Terra Luna Classic Tokens</a>
<h2 class="wp-block-heading" id="h-all-in-all">All in all …</h2>
As the trial wraps up, both parties will make their final arguments before the jury. It is likely that the Court might proceed with the case in the absence of Do Kwon unless the defence party conjointly pleads not to pass an ex-parte decree.&nbsp;

Terra vs SEC : Terraform Labs Presents Closing Arguments in Civil Fraud Trial Amidst Allegations of Investor Deception

Table of Contents

CoinPedia News

Other articles published on Apr 5, 2024

Ethena Labs Airdrop ENA Token, Top Recipient Received $1.96M Worth of ENA

Bitcoin Spot Trading Surges, Crypto Market Hits $9.12 Trillion Volume: What’s Next?

Top 5 Coins that Skyrocketed by Over 200% in Just 30 Days

Analytics Company Reveals 11 Altcoins That May List on Binance in the Next Period

XRP's Unexpected Breakthrough, Shiba Inu (SHIB) at Crucial Resistance Level, Ethereum (ETH) Stron...

Hump (HUMP) Dominates Solana Meme Coin Scene, Zooms Past Dogwifhat (WIF) and Book of Meme (BOME) ...

Join our free newsletter for daily crypto updates!