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Terraform Labs faces accusations by ex-communications head

TL;DR

  • Brian Curran, Terraform Labs’ former communications head, testified about misleading practices at the company in federal court.
  • Curran expressed frustration with Terraform Labs’ lack of truthful disclosure, aligning with SEC fraud accusations.
  • He recounted a stressful incident in May 2021 when TerraUSD depegged from the dollar, highlighting management challenges.

Brian Curran, Terraform Labs‘ former head of communications, provided a compelling testimony in a New York City federal court. He detailed his challenging experiences at the company, which led to significant frustration and anger. Curran’s account sheds light on the deceptive practices he encountered, specifically an incident in May 2021. This event involved issuing a misleading statement about TerraUSD’s stability under directives that he believed were dishonest.

Curran said he was disappointed with Terraform Labs as there was no truthful disclosure, which he considered to be a major issue. What he experienced is consistent with accusations that the Security and Exchange Commission (SEC) made against Terraform and its founder, Do Kwon. In the lawsuit, the SEC accused the company of fraud by stressing that this company had made false claims about the UST cryptocurrency stability and usage of LUNA coins. Curran’s statement confirms these accusations, and he dwells on the moral ambiguities he had to deal with while working with Terraform.

Curran details stressful times at Terraform Labs

The testimony further explored the strain of working under Terraform Labs’ management, especially during crises. Curran recounted a particularly stressful period when TerraUSD began to depeg from the dollar. He was informed of the situation while on a flight, leaving him unprepared for the PR challenges that awaited upon his arrival. This instance exemplifies the internal conflicts and public disputes Curran had to navigate, often exacerbated by Do Kwon’s aggressive social media presence.

The misleading directives from company leadership compounded Curran’s difficulties. One notable directive involved portraying a financial intervention as a natural recalibration of TerraUSD’s stability. This deception not only misled the public but also placed Curran in an ethically compromising position. Such practices contributed to his decision to leave the company, highlighting the broader challenges faced by employees amid Terraform Labs’ controversial operations.

Curran’s testimony deepens Terraform’s legal challenges

Brian Curran’s comments about Terraform Labs portray a company that has many problems on the inside, pressing to say the least. His evidence further extends the legal war against Terraform Labs and Do Kwon and also brings about a number of legal forms of confusion. The case highlights the significance of transparency in the cryptocurrency industry, a sector accused of its transparency and regulatory compliance.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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