A lawyer with the U.S. Securities and Exchange Commission on Monday told jurors in the Southern District of New York that the cryptocurrency company Terraform Labs and its founder Do Kwon built a “house of cards” that collapsed to investors’ detriment in 2022.

SEC trial counsel Devon Staren said she and her colleagues will show that Terraform engaged in two fraud schemes aimed at misleading investors to believe that the company was more successful and more stable than it truly was.