In a testimony at a New York City federal court, Brian Curran, the former head of communications at Terraform Labs, disclosed the company’s misleading practices. His statements contribute to the ongoing legal scrutiny following the collapse of TerraUSD in 2022. Curran, once at the forefront of Terraform’s public relations, voiced his frustrations with the company’s operations, specifically citing instances of deception.

Terraform Labs Exposed for Misleading Public Statements

Curran’s tenure at Terraform Labs was marked by ethical dilemmas, beginning with his interest in the crypto sphere. However, his excitement soon turned to dismay. An incident in May 2021 served as a critical point. Terraform UST cryptocurrency momentarily lost its peg to the US dollar. Curran was then directed to mislead the public via a Twitter post, asserting the coin’s stability needed “time to recalibrate.” He later learned the recovery was due to an intervention by Jump Trading, not natural market forces.

This experience left Curran “fairly angry,” realizing the push to disseminate false information. His testimony aligns with the Securities and Exchange Commission’s (SEC) accusations. The SEC alleges Terraform Labs and its founder, Do Kwon, engaged in fraudulent activities. The lawsuit points out the false claims regarding UST’s stability and LUNA coins’ usage, drawing investors under pretenses.

Internal Disputes Lead to High-Profile Crypto Exit

Curran detailed the challenges he faced, from internal disputes to dealing with aggressive social media confrontations initiated by Do Kwon. The depegging of Terra‘s currency during a flight across the Pacific exemplified the unpredictable crises he managed. These events underscored the precarious nature of his role, where the dissemination of accurate information often clashed with company directives.

The strain of these ethical conflicts eventually led Curran to depart from Terraform Labs. His departure signals the broader impacts of the company’s practices, affecting not just investors but employees as well. As Curran’s testimony unfolds in court, it paints a picture of a company embroiled in deception and internal turmoil.

The case against Terraform Labs and Do Kwon continues to unravel, raising significant legal and ethical questions. The testimony of Brian Curran serves as a crucial element, shedding light on the practices within Terraform Labs. As the legal battle progresses, more developments are expected to emerge, providing further insights into the operations of Terraform Labs and its impact on the crypto industry.

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The post Terraform Ex-PR Chief Exposes Deceptive Tactics in Court appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am