Coinspeaker Terraform Labs: CryptoQuant CEO Slams US Judicial System for Approving $4.5B SEC Settlement
On Thursday, June 13, the US District Judge finally signed off the $44.5 billion settlement between Terraform Labs, Do Kwon, and the US Securities and Exchange Commission (SEC).
The deal will basically see Do Kwon and Terra paying billions in fines and penalties to the SEC while essentially banning them from the crypto industry. As per the terms of the deal, Terraform Labs will pay a total of $3.6 billion in disgorgement in addition to a $420 million in civil penalty and around $467 million in prejudgement interest.
Along with the Terraform Labs, Do Kwon has also agreed to pay a sum total of $110 million in disgorgement along with $80 million in civil penalty and $14.3 million in prejudgment interest. In a statement on Thursday, SEC chair Gary Gensler stated:
“This case affirms what court after court has said: The economic realities of a product — not the labels, the spin, or the hype — determine whether it is a security under the securities laws. Terraform and Do Kwon’s fraudulent activities caused devastating losses for investors, in some cases wiping out entire life savings. Their fraud serves as a reminder that, when firms fail to comply with the law, investors get hurt.”
CryptoQuant CEO Slams US Judicial System on Terraform Judgement
CryptoQuant CEO Ki Young Ju criticized the US government’s approach to financial crimes, stating that obtaining $4.5 billion from Do Kwon would be impossible without him committing a financial crime.
He pointed out that government settlements often prioritize financial gains over upholding the law, which, according to Ju, reflects a broken American judicial system. Ju emphasized that the US, despite acting as a global enforcer, seizes criminal proceeds without compensating international victims. He also noted that Do Kwon, involved in the controversy, is a Korean national.
If Terraform Labs ACTUALLY has $4.5B in assets…
and if it ACTUALLY is paid as a fine to the @SECGov, instead of the users who lost money….
It'll be one of the craziest examples of agency corruption in our lifetimes
— DavidHoffman.eth/acc🦇🔊 (@TrustlessState) June 12, 2024
David Hoffman, a prominent figure associated with Bankless, expressed strong concerns regarding Terraform Labs potentially paying a $4.5 billion fine to the SEC. Hoffman speculated that if Terraform Labs indeed possesses $4.5 billion in assets and this amount is paid solely as a fine to the SEC rather than compensating users who suffered financial losses, it would represent a striking example of agency corruption in recent history.
next
Terraform Labs: CryptoQuant CEO Slams US Judicial System for Approving $4.5B SEC Settlement