Manhattan U.S. District Judge Jed S. Rakoff dealt a blow to Terraform Labs and its creator Do Kwon, dismissing a mistrial bid related to disclosures about the company’s alleged deception. The decision came amidst the ongoing trial against the backdrop of a multi-billion-dollar fraud suit filed by the U.S. Securities and Exchange Commission (SEC).
Terraform Mistrial Bid Loss : Judge Rakoff’s Firm Stand
Judge Rakoff firmly dismissed the mistrial bid, emphasizing, “This is a case about lying.” The defense’s attempt to challenge the proceedings faltered as arguments unfolded outside the jury’s presence.
Allegations of Deception
The SEC accuses Terraform of misleading investors by falsely promoting its cryptocurrency, UST, as “stable” while concealing risks. Additionally, the commission alleges that Terraform misrepresented the use of its LUNA coins, particularly in facilitating transactions through an e-commerce app in Korea.
Terraform Mistrial Bid Loss : Jury Drama
Tensions rose as Judge Rakoff questioned Terraform backers, revealing critical insights. Notably, an investor expressed shock at the notion of the company lying, indicating it would have dissuaded investment.
Legal Maneuvering
Kwon’s defense raised concerns about the judge’s line of questioning, hinting at potential bias. However, Judge Rakoff defended his actions, aiming to keep the jury focused amid what he called “irrelevancies and smokescreens.”
Witness Testimony Unfolds
As proceedings continued, a pivotal witness, former Chai executive Aaron Myung, took the stand. Myung’s testimony shed light on alleged discrepancies in Terraform’s operations, further complicating the defense’s stance.
Terraform Mistrial Bid Loss : Legal Representation
Kwon is backed by a formidable legal team from Kaplan Hecker & Fink LLP. Meanwhile, Terraform’s defense, led by Dentons, prepares to counter the SEC’s allegations.
Terraform Mistrial Bid Loss : Future Proceedings
With the mistrial bid thwarted, the trial marches forward, poised for more revelations and legal confrontations. The outcome remains uncertain as both sides gear up for a protracted legal battle.
