During the ongoing court proceedings concerning Terraform Labs’ allegations of fraud related to the collapse of its TerraUSD stablecoin in 2022, a former employee revealed the challenges he faced while working at Terraform.
Brian Curran, who previously served as the head of communications at Terraform, testified before a Manhattan federal jury on Monday, shedding light on his experiences within the company. Curran expressed that his role in managing public relations for Terraform often left him feeling frustrated.
Despite his efforts to maintain transparency with users during his tenure at Terraform, Curran disclosed that he was instructed by the company to craft false posts. Additionally, he shared his difficulties in working alongside Do Kwon, the embattled founder of Terraform, describing the experience as troublesome, as reported by Law360.
When questioned by Carina Cuellar, counsel for the SEC, Curran admitted to feeling a sense of anger upon realizing that he had been asked to compose a post by Kwon that he knew to be untrue. Specifically, in May 2021, when Terraform’s UST stablecoin experienced a loss in its dollar peg, Curran stated that he authored a post on X asserting that the dollar de-peg only required time to recalibrate, despite knowing it was false.
The de-pegging incident led to significant tension within the online crypto community, resulting in what Curran described as a public relations challenge for Terraform. Notably, former Terraform business development head Jeff Kuan highlighted an instance where Kwon referred to community members as “cockroaches” on Twitter, prompting a casual response from Curran expressing his reluctance to go camping again.
Curran revealed to the jury that he ultimately decided to leave Terraform due to his frustration with operating in an environment characterized by a lack of transparent communication. He recounted an incident where Terraform began de-pegging while he was in transit over the Pacific Ocean on a trip to meet colleagues in Singapore, leaving him feeling disoriented and perplexed upon arrival.
SEC Trial in NYC Involving Kwon
The commencement of the trial against Do Kwon by the United States Securities and Exchange Commission (SEC) on March 25 marks a significant development in the ongoing legal saga surrounding the Terraform Labs founder. This trial unfolds against the backdrop of Kwon’s recent release from detention in Montenegro, where the Supreme Court of the Balkan nation deliberates over his extradition destination.
At the heart of the legal proceedings are allegations leveled against Kwon, accusing him of breaching registration regulations and anti-fraud provisions stipulated in both the Securities Act and the Exchange Act of the United States. The legal ordeal for Kwon began when South Korea, his country of origin, issued an arrest warrant against him in September 2022, citing violations of national market laws.
However, it wasn’t until March 2023 that Kwon was apprehended in Montenegro while attempting to board a flight to Dubai, reportedly utilizing a counterfeit Costa Rican passport. This arrest marked a pivotal moment in the legal saga surrounding Kwon, setting in motion a series of events leading up to his current trial in the United States.
