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Terraform Labs case goes to court in the United States, protagonist Do Kwon appears handsomely in a black suit

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Terraform Labs case goes to court in the United States, protagonist Do Kwon appears handsomely in a black suit

The U.S. Securities and Exchange Commission (SEC) has officially filed a civil lawsuit against Do Kwon and Terraform Labs, with the trial commencing on 3/25 yesterday. The main character, Do Kwon, has been released from the Montenegro prison, but the previous decision to extradite him to South Korea has been postponed, thus he did not appear in court.

Montenegro Court: Do Kwon will be released but still restricted from leaving the country.

Do Kwon's Amazing Transformation After Release

According to netizens who shared photos of Terraform Labs founder Do Kwon being released from Black Mountain Prison, it's evident that the appearance of the cryptocurrency tycoon, who served time, has undergone a remarkable change!

Similarly, Su Zhu, co-founder of Three Arrows Capital, who went bankrupt, spent some time in a prison in Singapore last year due to missing a court date. He, as someone who has been through it, posted a video screenshot on X, writing:

I've always told people that prison is a place for dopamine rehabilitation/discipline reinforcement, you know what you need!

First Day Battle in Manhattan Court

Although the protagonist was absent, the case heated up in Manhattan court yesterday, with online media Coinage founder Zack Guzman providing full coverage.

Judge Rakoff spent some time selecting 9 jurors, 3 men and 6 women, none of whom hold any cryptocurrency. Subsequently, the battle focused on the following two points:

  1. Whether the payment app Chai, claimed to be partnered with Terraform Labs, is running on the Terra blockchain?
  2. Whether Terraform Labs misled about the pegging of its UST to 1 USD?

However, Guzman believes that the arguments from both sides are almost a copy-and-paste of the Department of Justice vs. SBF trial. The SEC claims this is a fraud case, unrelated to technology. The defense, on the other hand, asserts "failure does not equate to fraud."