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Ongoing Court Trials Linked to Terraform Labs’ Fraud Claims
In a series of ongoing court trials related to Terraform Labs’ fraud claims associated with the 2022 implosion of its TerraUSD stablecoin, one former employee sheds light on the challenges faced while working at the company.
Testimony of Brian Curran
Brian Curran, former head of communications at Terraform, testified in a Manhattan federal jury that his experience spearheading public relations for the company was filled with difficulties. He mentioned feeling “angry” due to the company’s practices.
- Curran aimed to be transparent with users during his PR work for Terraform.
- He revealed that he was asked to write false posts by the company.
- Working with Do Kwon, the founder of Terraform, posed additional challenges.
Curran expressed his frustration, stating, “I was fairly angry because I realized that he had tried to deceive me to write a post that he knew to be false.”
De-Pegging of Terraform’s UST Stablecoin
In May 2021, Terraform’s UST stablecoin lost its dollar peg, causing concerns within the community. Curran testified that he wrote a post suggesting the de-peg just needed time to recalibrate, despite knowing it was false.
The de-pegging incident led to online infighting between Terraform, Kwon, and the crypto community, creating a PR headache.
Departure from Terraform
Curran shared that he left Terraform due to operating in an information vacuum and feeling overwhelmed by the situation. He recalled a specific incident where Terra started depegging while he was traveling, leaving him “dazed and confused” upon landing.
SEC Trial Against Do Kwon
The United States Securities and Exchange Commission (SEC) initiated a trial against Do Kwon on March 25. Kwon faces charges related to violating registration and anti-fraud provisions of the Securities Act and the Exchange Act.
Kwon’s legal troubles began with an arrest warrant issued by South Korea in September 2022 for violating national markets law. After being detained in Montenegro in March 2023, Kwon attempted to use a fake Costa Rican passport to travel to Dubai.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
