NAXO is proud to have worked with the SEC in a major win for accountability in the crypto space. Last Friday, a Manhattan jury found Terraform Labs and its former CEO, Do Kwon, liable for fraud in a landmark case brought by the SEC. The SEC alleged that Terraform and Kwon misled investors about whether a Korean mobile payments app called Chai used the Terra blockchain to process payments, and about the stability of their algorithmic stablecoin, TerraUSD (UST), before its collapse in 2022. NAXO Co-Founder and Partner, Dr. Matthew Edman, testified during the nine-day trial as a key expert witness for the SEC, with support from David Franzel and Dayana Meza Giraldo throughout the investigation and trial. Like many of NAXO’s expert engagements, our comprehensive analysis of Chai’s alleged use of the Terra blockchain incorporated not only blockchain data, but also numerous other sources of data including source code repositories, public statements by Terraform and Do Kwon, internal developer communications, and deposition testimony. This was a challenging and fast-paced case, but the entire SEC team was wonderful to work with and we are pleased with the result. Now on to the next one. 🚀 https://bloom.bg/3TSAaii
