TL;DR
Yesterday, Terraform Labs and its former CEO, Do Kwon, agreed to settle their SEC fraud case…for $4.5 billion.
Full Story
Yesterday, Terraform Labs and its former CEO, Do Kwon, agreed to settle their SEC fraud case…for ~$4.5 billion.
In Could, a Manhattan jury discovered that Kwon and Terraform Labs misled traders in regards to the success and stability of the Terra blockchain earlier than it imploded, leaving traders $40B within the gap.
Of the $4.5B owed, Kwon is personally liable to pay $204 million, which the SEC stated would “ship an unmistakable deterrent message.”
However right here’s the factor:
It is smart that the corporate might need $4.3B in treasury property (i.e. $4.3B price of BTC, ETH, gold, USD or one thing else of worth).
And {that a} chapter property at the moment has management over no matter property they do have and can be capable of pay that again.
But it surely raises two huge questions…
Firstly, shouldn’t that cash be going again to traders straight?
Possibly the last word plan is for the SEC to distribute it giving traders ~$0.10 on the greenback.
Secondly, how within the heck does Do Kwon have $204M?
(It’s not like you possibly can work in a Montenegro McDonalds and make that form of money in a yr).
If Do Kwon comes up with the money (which is required inside 30 days), it severely makes you marvel what number of extra crypto property he has.
Appears like justice – however we’re as confused as you’re.
