### From $40 Billion Fraud to $4.5 Billion Settlement: Terraform Labs’ Legal Saga
#FraudCase #terra #altcoins #altcoins

#Terraform Labs Faces SEC Charges
The cryptocurrency world is no stranger to regulation and fraud issues. Recently, the US Securities and Exchange Commission (SEC) took action against Terraform Labs, a Singapore-based company once valued at over $40 billion. The SEC accused Terraform Labs and its founder, Do Kwon, of conducting a massive fraud through unregistered security offerings.

#Fraud Allegations

The SEC claims Terraform Labs misled investors about its digital assets, including its native token Luna and the stablecoin TerraUSD (UST). The allegations state that Kwon and Terraform falsely assured investors of UST's stability, which was pegged to the US dollar. In May 2022, UST lost its peg, causing Luna's value to plummet and wiping out billions in investor funds.

#$4.5 Billion Settlement

To avoid a trial and severe penalties, Terraform Labs and Do Kwon agreed to a $4.5 billion settlement with the SEC. This settlement includes returning funds raised through the alleged fraud and paying civil penalties, marking one of the SEC’s largest settlements with a crypto company.

#Impact on Cryptocurrency

The Terraform Labs case underscores the challenges in the crypto industry, including regulatory uncertainty and the risk of fraud. However, the SEC’s action might be seen as a positive step, showing a commitment to holding wrongdoers accountable and possibly deterring future fraud.

#Open Questions

Despite the settlement, questions remain. How will the $4.5 billion be distributed to affected investors? What impact will this case have on the broader crypto market? The future will reveal how the industry adapts to increased regulation.

Trump Promises to End Biden’s Crypto Policies
Donald Trump, a candidate for the U.S. presidency, has pledged to adopt a more favorable stance on cryptocurrency compared to the current Biden administration.
#bitcoin #TrumpInPump #usa
Trump's Cryptocurrency Stance
During a speech in West Palm Beach, Florida, Trump vowed to end President Joe Biden’s “war on crypto” if he is elected. He emphasized his plan to support the growth of cryptocurrency, especially in Florida. “We will ensure the future of crypto and Bitcoin will be made in America, right here in Florida,” Trump said on June 14, his 78th birthday.
Trump has often criticized Biden’s strict stance on cryptocurrency. On May 26, he stressed that the U.S. should lead the global crypto industry. On May 25, he posted on Truth Social, stating, “Joe Biden wants crypto to die a slow, painful death. That will never happen with me.”
2024 Election and Crypto
Trump will face Biden in the 2024 presidential election on November 5. Part of Trump’s campaign is to make Florida a central hub for cryptocurrency. CoinLedger recently named Florida the best state for crypto taxes due to its lack of state income tax and crypto-friendly regulations, including a program allowing businesses to pay state fees in crypto. New York was ranked the worst state for crypto taxes.
Support for Bitcoin Mining
On June 12, Trump expressed his support for the Bitcoin mining industry, stating he wants all remaining Bitcoin to be mined in the U.S.
Trump’s pro-crypto stance aims to attract the support of crypto enthusiasts and investors across the country.

Credit to original content: cryptopaid.net/trump-pledges-to-end-bidens-crypto-policies/