Can Terraform Labs, which has filed for bankruptcy protection, afford the huge fine of $5.158 billion? (Warning at the end of the article 🚨)
Just now,#SECsubmitted a notice to the Delaware Bankruptcy Court, simultaneously requesting that Terraform Labs not be exempted from paying a huge civil penalty of $5.158 billion to the SEC because of its application for bankruptcy protection:
* Illegal proceeds: ≈$4.192 billion
* Administrative fines: ≈$420 million
* Preliminary interest: ≈$546 million
(In addition, the SEC also requires Do Kwon to pay an administrative fine of $100 million, which should actually be $5.2 billion)
Looking back at the SEC v. Terraform Labs/Do Kwon securities fraud case, the defendant applied to the local court for a final jury verdict, and the role of the judge is to guide the jury procedure and interpret the law. Although the jury ultimately found Terraform Labs/Do Kwon guilty, the administrative order to implement the penalty activities still needs to be signed by the judge.
A week has passed, and the order has not been signed. The judge should be hesitant whether the defendant is ready to appeal against this verdict, because so much money is really not available.
(Refer to Ripple Labs' appeal against the SEC's requirement that the company pay a $2 billion fine for its institutional sales of XRP)
But the SEC closed its eyes and said, "They have money," and listed all kinds of bad evidence.
For example, in the legal memorandum of the jury's verdict: "More than $40 billion in market value was almost wiped out overnight, while the defendants made more than $4 billion in ill-gotten gains from their illegal behavior, (and possibly much more)"
There are many more unreasonable evidences like this~
If you are interested or want to know from which angles and logic the SEC accuses crypto projects of illegal activities, then this document is worth a look, (translated) 👇
drive.google.com/file/d/1t6qLqd…
🚨I have a feeling that if the SEC wins the case against Ripple, CoinBase, Terraform, and Uniswap in the future, it will have enough confidence and cases to support its perverted continued intimidation and crackdown on many crypto industry projects!
🚨Many crypto head project teams and CEOs should be careful this year!
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