Therefore, Do Kwon faces summary judgment

After Sam Bankman-Fried (SBF), Do Kwon could be the second anti-hero of the latest Bitcoin bear market to be condemned. The SEC wants summary judgment.

The proceedings against Terraform Labs and founder Do Kwon could lead to summary judgment. The SEC, acting as plaintiff in the proceeding, considers it proven that Terraform Labs and Do Kwon as director were guilty of fraud. The evidence is "clear, undisputed and overwhelming," the authority said in its petition. The conviction would therefore be obtained by summary judgment - thus a trial would not be necessary.

So the chances of Do Kwon actually being convicted without red tape are again increasing. After all, Do Kwon's lawyer is also pushing for summary judgment. However, it is in the nature of things that he wants an acquittal rather than a conviction. According to the defense, it has not been proven that Do Kwon sold unregistered securities.

Did Do Kwon manipulate the Terra blockchain?

The SEC filed a lawsuit against Terraform Labs and Do Kwon back in February. The agency accuses the entrepreneur of falsifying blockchain activity on the Terra Chain and selling unregistered securities. "When this fraud came to light, investors in Terraform's crypto securities lost almost everything," the SEC writes in the statement of claim. Investors lost up to $45 billion.

Do Kwon is currently in custody in Montenegro. The South Korean was arrested for forging documents after trying to leave the country with a forged passport.

The downfall of Terra Luna in May 2022, alongside the FTX scandal, is considered a defining event of the last bear market. With the rapid decline in the price of Bitcoin and the like, the stability of the dollar stablecoin TerraUSD (TUSD) could no longer be guaranteed. The token lost a huge amount of value within hours and eventually collapsed. In the end, billions were wiped out, the Terra ecosystem was history and Do Kwon was on the run.

It is still unclear whether Montenegro will extradite Do Kwon to the U.S. if he is found guilty.