TerraUSD
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Terraform Labs files for bankruptcy: What happens now?
-Terraform Labs has filed for bankruptcy.
-In response, the price of $LUNA plummeted.
In the US, Terraform Labs, the firm behind the now-defunct stablecoin #TerraUSD [UST], filed for Chapter 11 bankruptcy protection.
The document, filed with the United States #Bankruptcy Court for the District of Delaware, revealed assets and liabilities estimated to be between $500 million and $100 million.
This development comes amid ongoing legal challenges and follows the collapse of the Terra ecosystem in May 2022.
Calling it quits
In response to the bankruptcy filing, Chris Amani, the CEO of #Terraform Labs, emphasized the resilience of the Terra community.
He stated that the move is essential to address legal hurdles and continue working towards collective goals. #cryptoniteuae #Write2Earn
-Terraform Labs has filed for bankruptcy.
-In response, the price of $LUNA plummeted.
In the US, Terraform Labs, the firm behind the now-defunct stablecoin #TerraUSD [UST], filed for Chapter 11 bankruptcy protection.
The document, filed with the United States #Bankruptcy Court for the District of Delaware, revealed assets and liabilities estimated to be between $500 million and $100 million.
This development comes amid ongoing legal challenges and follows the collapse of the Terra ecosystem in May 2022.
Calling it quits
In response to the bankruptcy filing, Chris Amani, the CEO of #Terraform Labs, emphasized the resilience of the Terra community.
He stated that the move is essential to address legal hurdles and continue working towards collective goals. #cryptoniteuae #Write2Earn
🚀🚀🚀 #SEC Whistleblower Reveals Chai Payments App in Terra Ecosystem Didn’t Use Crypto 🚀🚀🚀
Four cryptocurrency tokens offered by Do Kwon and Terraform Labs, the company he co-founded, have been deemed unregistered securities in a recent summary judgment ruling by Judge Jed Rakoff of the U.S. Court for the Southern District of New York. The tokens in question include #TerraUSD (UST), $LUNA , wLUNA, and Mirror Protocol (MIR). Notably, the ruling dismissed the notion that Terra’s Mirror Protocol “mAssets” constituted security-based swaps.
The judgment highlighted a crucial revelation regarding the Chai payments platform, which Kwon often promoted as a real-world use case of the Terra #blockchain . The SEC presented evidence indicating that the Chai platform did not operate on the Terra blockchain as claimed. Payments were allegedly settled using traditional methods and then mirrored on the Terra blockchain through a server under Kwon’s control, according to an email from a Chai employee in May 2020.
Moreover, a whistleblower, identified as Chai’s Chief Product Officer, disclosed that a former Terraform employee who joined Chai revealed that “there’s no crypto going on within Chai.” The whistleblower claims to have confronted Kwon about Chai’s true nature in September 2021, with Kwon allegedly showing indifference.
Despite compelling evidence, Judge Rakoff acknowledged disputes of material fact, particularly concerning the credibility of whistleblowers. The defense argues that one whistleblower attempted to extort Kwon and Terra co-founder Daniel Shin after being terminated from Chai. Inconsistencies in the whistleblower’s account, including the source of information about Chai’s systems, also contribute to the disputes.
Terraform CTO Chris Amani contradicts claims, stating Chai used the blockchain. The court ruled Kwon and Terraform violated U.S. law for unregistered digital currencies. Summary judgment on SEC fraud claims denied, trial scheduled for January 29, 2024.
Source - Ruholamin Haqshanas @ruholamin-haqshanas
Website - Cryptonews
Four cryptocurrency tokens offered by Do Kwon and Terraform Labs, the company he co-founded, have been deemed unregistered securities in a recent summary judgment ruling by Judge Jed Rakoff of the U.S. Court for the Southern District of New York. The tokens in question include #TerraUSD (UST), $LUNA , wLUNA, and Mirror Protocol (MIR). Notably, the ruling dismissed the notion that Terra’s Mirror Protocol “mAssets” constituted security-based swaps.
The judgment highlighted a crucial revelation regarding the Chai payments platform, which Kwon often promoted as a real-world use case of the Terra #blockchain . The SEC presented evidence indicating that the Chai platform did not operate on the Terra blockchain as claimed. Payments were allegedly settled using traditional methods and then mirrored on the Terra blockchain through a server under Kwon’s control, according to an email from a Chai employee in May 2020.
Moreover, a whistleblower, identified as Chai’s Chief Product Officer, disclosed that a former Terraform employee who joined Chai revealed that “there’s no crypto going on within Chai.” The whistleblower claims to have confronted Kwon about Chai’s true nature in September 2021, with Kwon allegedly showing indifference.
Despite compelling evidence, Judge Rakoff acknowledged disputes of material fact, particularly concerning the credibility of whistleblowers. The defense argues that one whistleblower attempted to extort Kwon and Terra co-founder Daniel Shin after being terminated from Chai. Inconsistencies in the whistleblower’s account, including the source of information about Chai’s systems, also contribute to the disputes.
Terraform CTO Chris Amani contradicts claims, stating Chai used the blockchain. The court ruled Kwon and Terraform violated U.S. law for unregistered digital currencies. Summary judgment on SEC fraud claims denied, trial scheduled for January 29, 2024.
Source - Ruholamin Haqshanas @ruholamin-haqshanas
Website - Cryptonews
👉👉👉 Former Terra developer testifies against Do Kwon at South Korean court: report
During a witness questioning at the third trial involving eight former members of Terraform Labs, including co-founders Kwon Do-hyeong and Shin Hyun-seung, a former developer named Lee testified on Monday. Lee disclosed that Kwon and Shin had promoted #TerraUSD #stablecoin as a potential payment option to investors, despite being aware of local regulations prohibiting such offerings, according to local media reports.
The testimony emerged amidst ongoing legal proceedings following the collapse of the Terra-Luna crypto project in 2022. South Korean prosecutors have leveled accusations against Kwon, Shin, and Terraform Labs, alleging fraud in falsely promoting Terra's USD-pegged stablecoin as a viable payment measure, among other charges.
Shin, in defense, argued that regulators hadn't clearly defined the stance on crypto usage for payments. He also maintained that he had severed ties with Terra two years prior to the project's collapse, denying involvement in the debacle.
Lee, whose full name wasn't disclosed in adherence to South Korea's privacy regulations, reportedly testified that Kwon had acknowledged South Korean financial regulations prevented TerraUSD from being utilized as a payment method, indicating the executives' awareness of the stablecoin's limitations. In response, Shin's defense team disputed the accuracy of such testimony.
In a parallel development, former Terra CFO Han Chang-joon, a close associate of Kwon, was extradited from Montenegro to South Korea on Monday. He is expected to arrive in Seoul on Tuesday afternoon and face investigation by local prosecutors, as reported by Aju Business Daily.
In March of the previous year, Han and Kwon were arrested at a Montenegrin airport for attempting to travel with forged documents. Kwon remains in custody in Montenegro as local authorities deliberate on whether to extradite him to South Korea or the U.S.
Source - theblock.co
#CryptoNews #BinanceSquare #cryptocurrency
During a witness questioning at the third trial involving eight former members of Terraform Labs, including co-founders Kwon Do-hyeong and Shin Hyun-seung, a former developer named Lee testified on Monday. Lee disclosed that Kwon and Shin had promoted #TerraUSD #stablecoin as a potential payment option to investors, despite being aware of local regulations prohibiting such offerings, according to local media reports.
The testimony emerged amidst ongoing legal proceedings following the collapse of the Terra-Luna crypto project in 2022. South Korean prosecutors have leveled accusations against Kwon, Shin, and Terraform Labs, alleging fraud in falsely promoting Terra's USD-pegged stablecoin as a viable payment measure, among other charges.
Shin, in defense, argued that regulators hadn't clearly defined the stance on crypto usage for payments. He also maintained that he had severed ties with Terra two years prior to the project's collapse, denying involvement in the debacle.
Lee, whose full name wasn't disclosed in adherence to South Korea's privacy regulations, reportedly testified that Kwon had acknowledged South Korean financial regulations prevented TerraUSD from being utilized as a payment method, indicating the executives' awareness of the stablecoin's limitations. In response, Shin's defense team disputed the accuracy of such testimony.
In a parallel development, former Terra CFO Han Chang-joon, a close associate of Kwon, was extradited from Montenegro to South Korea on Monday. He is expected to arrive in Seoul on Tuesday afternoon and face investigation by local prosecutors, as reported by Aju Business Daily.
In March of the previous year, Han and Kwon were arrested at a Montenegrin airport for attempting to travel with forged documents. Kwon remains in custody in Montenegro as local authorities deliberate on whether to extradite him to South Korea or the U.S.
Source - theblock.co
#CryptoNews #BinanceSquare #cryptocurrency
👉👉👉 Terraform Labs files for Chapter 11 bankruptcy in Delaware
Terraform Labs Pte. Ltd. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, as reported by the court’s website. With estimated liabilities and assets ranging between $100 million and $500 million, the company, known for the algorithmic #stablecoin #TerraUSD and Luna cryptocurrency, faced a collapse in May 2022. In February 2023, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and then-CEO Kwon Do-hyeong with fraud. Kwon, arrested in March for attempting to travel with false documents, awaits extradition from Montenegro, while the #SEC trial is postponed to late March.
Source - theblock.co
#CryptoNews #Cryptocurrrency
Terraform Labs Pte. Ltd. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, as reported by the court’s website. With estimated liabilities and assets ranging between $100 million and $500 million, the company, known for the algorithmic #stablecoin #TerraUSD and Luna cryptocurrency, faced a collapse in May 2022. In February 2023, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and then-CEO Kwon Do-hyeong with fraud. Kwon, arrested in March for attempting to travel with false documents, awaits extradition from Montenegro, while the #SEC trial is postponed to late March.
Source - theblock.co
#CryptoNews #Cryptocurrrency
Ex-Terraform Labs Developer Testifies Against Do Kwon in South Korean Court
On Monday, a former developer from #Terraform Labs named Lee testified that Kwon Do-hyeong and Shin Hyun-seung, co-founders of the company, promoted #TerraUSD stablecoins as a potential payment option for investors, even though they were aware that local regulations prohibited such an offering, according to local media reports.
Testimony During a Court Hearing
The testimony was presented during a witness's examination in the third legal case involving eight former members of Terraform Labs, including Shin, as reported by the local news channel Chosun Ilbo. The full name of the former developer Lee was not disclosed due to South Korea's privacy protection rules.
After the catastrophic collapse of the Terra-Luna #crypto project in 2022, South Korean prosecutors accused Kwon, Shin, and Terraform Labs of deceiving investors by falsely promoting that Terra stablecoins pegged to the USD could be used as a means of payment.
However, at that time, Shin claimed that regulators had not taken a clear stance on the use of cryptocurrencies as a payment method. Shin also stated that he had left Terra two years before the collapse and had no connection to the debacle.
Lee, the former developer, allegedly testified that Kwon had stated that South Korean financial regulations prohibited the use of TerraUSD as a payment method, suggesting that Terra's managers were aware of the stablecoin's limitations. In response, Shin's defense team argued that such testimony was false.
Meanwhile, on Monday, the former financial director of Terra, Han Chang-joon, a key associate of Kwon, was extradited from Montenegro to South Korea. It is expected that Han will arrive in Seoul on Tuesday afternoon in Asia and subsequently face an investigation by local prosecutors, as reported by the local news portal Aju Business Daily.
In March of last year, Han and Kwon were arrested at the Montenegrin airport for attempting to travel with counterfeit documents. Kwon remains in custody in Montenegro as local authorities continue to consider whether to extradite him to South Korea or the USA.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Testimony During a Court Hearing
The testimony was presented during a witness's examination in the third legal case involving eight former members of Terraform Labs, including Shin, as reported by the local news channel Chosun Ilbo. The full name of the former developer Lee was not disclosed due to South Korea's privacy protection rules.
After the catastrophic collapse of the Terra-Luna #crypto project in 2022, South Korean prosecutors accused Kwon, Shin, and Terraform Labs of deceiving investors by falsely promoting that Terra stablecoins pegged to the USD could be used as a means of payment.
However, at that time, Shin claimed that regulators had not taken a clear stance on the use of cryptocurrencies as a payment method. Shin also stated that he had left Terra two years before the collapse and had no connection to the debacle.
Lee, the former developer, allegedly testified that Kwon had stated that South Korean financial regulations prohibited the use of TerraUSD as a payment method, suggesting that Terra's managers were aware of the stablecoin's limitations. In response, Shin's defense team argued that such testimony was false.
Meanwhile, on Monday, the former financial director of Terra, Han Chang-joon, a key associate of Kwon, was extradited from Montenegro to South Korea. It is expected that Han will arrive in Seoul on Tuesday afternoon in Asia and subsequently face an investigation by local prosecutors, as reported by the local news portal Aju Business Daily.
In March of last year, Han and Kwon were arrested at the Montenegrin airport for attempting to travel with counterfeit documents. Kwon remains in custody in Montenegro as local authorities continue to consider whether to extradite him to South Korea or the USA.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
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Worst Cryptocurrency of 2024
In 2024, the worst cryptocurrency was TerraUSD ($UST), an algorithmic stablecoin of the Terra project:
1. In May 2024, UST lost its peg to the US dollar, which led to the collapse of the entire Terra ecosystem.
2. The price of UST fell to 10 cents, and its sister token LUNA became almost worthless due to the rate maintenance algorithm.
3. The collapse of Terra dealt a serious blow to the stablecoin market and caused a massive crypto sell-off.
4. Investors lost billions of dollars invested in UST and LUNA. Many DeFi companies and protocols have been affected.
5. The Terra developers were never able to restore confidence in their project after this fiasco.
The sad story of TerraUSD became a lesson about the risks of algorithmic stablecoins and the importance of reliable mechanisms for ensuring the stability of cryptocurrencies.
What do you think about this cryptocurrency?
Write in the comments and subscribe so as not to miss other crypto posts
#TerraUSD #ХудшаяКриптовалюта #Крах #Стейблкоины #Риски
In 2024, the worst cryptocurrency was TerraUSD ($UST), an algorithmic stablecoin of the Terra project:
1. In May 2024, UST lost its peg to the US dollar, which led to the collapse of the entire Terra ecosystem.
2. The price of UST fell to 10 cents, and its sister token LUNA became almost worthless due to the rate maintenance algorithm.
3. The collapse of Terra dealt a serious blow to the stablecoin market and caused a massive crypto sell-off.
4. Investors lost billions of dollars invested in UST and LUNA. Many DeFi companies and protocols have been affected.
5. The Terra developers were never able to restore confidence in their project after this fiasco.
The sad story of TerraUSD became a lesson about the risks of algorithmic stablecoins and the importance of reliable mechanisms for ensuring the stability of cryptocurrencies.
What do you think about this cryptocurrency?
Write in the comments and subscribe so as not to miss other crypto posts
#TerraUSD #ХудшаяКриптовалюта #Крах #Стейблкоины #Риски
Do Kwon Seeks to Postpone Court Proceedings in the United States
Do Kwon, co-founder of Terraform Labs, is striving to delay his court proceedings in the United States while simultaneously resolving his legal issues in Montenegro to ensure his physical presence in the U.S. court.
Request for Postponement of Court Date
Do Kwon, the co-founder of #TerraformLabs , is requesting the federal court in the Southern District of New York to reschedule his court hearing to March due to complications related to his extradition from Montenegro.
Kwon's Interest in Personal Attendance at the Court Process
In a letter dated January 11th, sent to Judge Jed Rakoff, Kwon’s legal team emphasized his desire to personally attend the court process, scheduled for January 29th. They expressed the hope that Kwon would be able to return to the USA in time: "Mr. Kwon wants to be personally at the court. His lawyers hoped that the extradition process in Montenegro would proceed more quickly."
SEC Accusations and Connection with the Collapse of TerraUSD
In February 2023, the SEC accused Kwon of fraudulent activities, alleging that he was involved in organizing a large-scale crypto currency fraud. The accusation is related to the collapse of the #TerraUSD (USTC) stablecoin of TerraformLabs and its associated token #Terra (#LUNA ).
Response of Kwon's Legal Team to the Urgency of the Process
Kwon's legal team acknowledged the urgency of the court process but stated that Kwon could not attend this month. "We understand that the court cannot be indefinitely postponed, but moving the date to mid-March could realistically enable Mr. Kwon to attend the process," the letter stated.
New Decision of the Appeals Court in Montenegro
In December 2023, it was announced that the appellate court in Montenegro overturned the decision to extradite #kwon either to the USA or to South Korea. This was revealed just a week after it was announced that U.S. and South Korean authorities requested his detention for an additional two months after the end of his custody.
Efforts of the USA and South Korea for Kwon's Extradition
Both the USA and South Korea are seeking Kwon's extradition, with speculations in both countries about the potential outcome of his case.
Kwon's Arrest and Forged Documents
Kwon was arrested in Montenegro in March 2023 after he attempted to leave the country with forged travel documents.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Request for Postponement of Court Date
Do Kwon, the co-founder of #TerraformLabs , is requesting the federal court in the Southern District of New York to reschedule his court hearing to March due to complications related to his extradition from Montenegro.
Kwon's Interest in Personal Attendance at the Court Process
In a letter dated January 11th, sent to Judge Jed Rakoff, Kwon’s legal team emphasized his desire to personally attend the court process, scheduled for January 29th. They expressed the hope that Kwon would be able to return to the USA in time: "Mr. Kwon wants to be personally at the court. His lawyers hoped that the extradition process in Montenegro would proceed more quickly."
SEC Accusations and Connection with the Collapse of TerraUSD
In February 2023, the SEC accused Kwon of fraudulent activities, alleging that he was involved in organizing a large-scale crypto currency fraud. The accusation is related to the collapse of the #TerraUSD (USTC) stablecoin of TerraformLabs and its associated token #Terra (#LUNA ).
Response of Kwon's Legal Team to the Urgency of the Process
Kwon's legal team acknowledged the urgency of the court process but stated that Kwon could not attend this month. "We understand that the court cannot be indefinitely postponed, but moving the date to mid-March could realistically enable Mr. Kwon to attend the process," the letter stated.
New Decision of the Appeals Court in Montenegro
In December 2023, it was announced that the appellate court in Montenegro overturned the decision to extradite #kwon either to the USA or to South Korea. This was revealed just a week after it was announced that U.S. and South Korean authorities requested his detention for an additional two months after the end of his custody.
Efforts of the USA and South Korea for Kwon's Extradition
Both the USA and South Korea are seeking Kwon's extradition, with speculations in both countries about the potential outcome of his case.
Kwon's Arrest and Forged Documents
Kwon was arrested in Montenegro in March 2023 after he attempted to leave the country with forged travel documents.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
2023: A Rollercoaster Year for Bitcoin and Crypto
Early-Year Challenges:
- Bitcoin started 2023 around $20,000, recovering from a challenging 2022.
- Lingering optimism faced headwinds from inflation and economic uncertainty.
May Market Collapse:
- #TerraUSD stablecoin collapse triggered a significant market downturn.
- Bitcoin dropped below $20,000, panic selling intensified.
Summer Recovery:
- Gradual recovery amid growing institutional interest.
- Traditional finance giants like BlackRock entered the crypto space.
- Bitcoin climbed back above $30,000, fostering positive sentiment.
September Surge and Disappointment:
- Brief surge in September with Bitcoin surpassing $45,000.
- Hopes around Ethereum's "merge" upgrade and increased #DEFI activity proved short-lived.
FTX Fallout in November:
- FTX exchange collapse, allegedly due to fraudulent activity.
- Bitcoin plummeted, raising concerns about regulation and systemic risk.
- Industry-wide calls for transparency and accountability.
Year of Innovation:
- Ethereum's successful merge to Proof-of-Stake enhanced scalability and energy efficiency.
- Adoption of Layer 2 solutions and zero-knowledge proofs addressed DeFi and NFT scalability and privacy concerns.
- Central bank digital currencies (CBDCs) gained focus, with pilot programs and exploration in several countries.
Regulatory Challenges:
- Ongoing regulatory anxieties, with the SEC scrutinizing exchanges and DeFi platforms.
- G20 and Financial Stability Board took tentative steps toward global regulatory frameworks.
Looking Ahead to 2024:
- Volatility and uncertainty persist in the crypto market.
- FTX saga prompted calls for reform and responsible innovation.
- Anticipation of increased regulation in 2024, potentially stabilizing the ecosystem.
- Shift towards practical blockchain applications beyond speculation and financial instruments.
#Bitcoin2024 #FTX #NFT
Early-Year Challenges:
- Bitcoin started 2023 around $20,000, recovering from a challenging 2022.
- Lingering optimism faced headwinds from inflation and economic uncertainty.
May Market Collapse:
- #TerraUSD stablecoin collapse triggered a significant market downturn.
- Bitcoin dropped below $20,000, panic selling intensified.
Summer Recovery:
- Gradual recovery amid growing institutional interest.
- Traditional finance giants like BlackRock entered the crypto space.
- Bitcoin climbed back above $30,000, fostering positive sentiment.
September Surge and Disappointment:
- Brief surge in September with Bitcoin surpassing $45,000.
- Hopes around Ethereum's "merge" upgrade and increased #DEFI activity proved short-lived.
FTX Fallout in November:
- FTX exchange collapse, allegedly due to fraudulent activity.
- Bitcoin plummeted, raising concerns about regulation and systemic risk.
- Industry-wide calls for transparency and accountability.
Year of Innovation:
- Ethereum's successful merge to Proof-of-Stake enhanced scalability and energy efficiency.
- Adoption of Layer 2 solutions and zero-knowledge proofs addressed DeFi and NFT scalability and privacy concerns.
- Central bank digital currencies (CBDCs) gained focus, with pilot programs and exploration in several countries.
Regulatory Challenges:
- Ongoing regulatory anxieties, with the SEC scrutinizing exchanges and DeFi platforms.
- G20 and Financial Stability Board took tentative steps toward global regulatory frameworks.
Looking Ahead to 2024:
- Volatility and uncertainty persist in the crypto market.
- FTX saga prompted calls for reform and responsible innovation.
- Anticipation of increased regulation in 2024, potentially stabilizing the ecosystem.
- Shift towards practical blockchain applications beyond speculation and financial instruments.
#Bitcoin2024 #FTX #NFT
🛑 Terraform Labs Liquidation Begins 🛑
The long-awaited liquidation of Terraform Labs has begun after court approval, following the collapse of the TerraUSD stablecoin. Binance is closely watching this development, as it could set a precedent for future crypto liquidations. The liquidation comes as part of the aftermath of one of the most dramatic crashes in crypto history, which impacted the market heavily in 2022.
#TerraformLabs #Liquidation #CryptoNews #TerraUSD #Binance
The long-awaited liquidation of Terraform Labs has begun after court approval, following the collapse of the TerraUSD stablecoin. Binance is closely watching this development, as it could set a precedent for future crypto liquidations. The liquidation comes as part of the aftermath of one of the most dramatic crashes in crypto history, which impacted the market heavily in 2022.
#TerraformLabs #Liquidation #CryptoNews #TerraUSD #Binance
Former Employee Exposes Terraform Labs. 📇ℹ️
Terraform Labs, a prominent name in cryptocurrency, is now under scrutiny as serious allegations surface from a former employee. Lee, a whistleblower, sheds light on alleged illicit activities by Terraform Labs founders, Kwon Do-hyeong and Shin Hyun-seung.
Kwon and Shin are accused of considering TerraUSD as a payment option to investors, despite its potential legal ramifications. Lee contends that the founders, fully aware of the illegality, still saw TerraUSD as a means of payment, raising significant ethical concerns.
South Korean authorities have initiated legal action against Kwon and Shin following the collapse of the Terra-Luna project. This legal move suggests that the founders might be held accountable for their actions.
Lee's testimony reveals that Kwon was cognizant of the fact that TerraUSD, being a stablecoin, couldn't be utilized as a legitimate payment method.
In a twist, Terra CFO Han Chang-joon has been extradited from Montenegro to South Korea, indicating an impending investigation by Korean authorities.
The unfolding events cast a shadow of potential legal repercussions for Terraform Labs and its founders. The cryptocurrency community eagerly awaits further details as the investigation continues to unfold. Stay tuned for updates on this evolving story.
#TerraLunaClassic #Terraform #TerraUSD #DoKwon #SouthKorea
Terraform Labs, a prominent name in cryptocurrency, is now under scrutiny as serious allegations surface from a former employee. Lee, a whistleblower, sheds light on alleged illicit activities by Terraform Labs founders, Kwon Do-hyeong and Shin Hyun-seung.
Kwon and Shin are accused of considering TerraUSD as a payment option to investors, despite its potential legal ramifications. Lee contends that the founders, fully aware of the illegality, still saw TerraUSD as a means of payment, raising significant ethical concerns.
South Korean authorities have initiated legal action against Kwon and Shin following the collapse of the Terra-Luna project. This legal move suggests that the founders might be held accountable for their actions.
Lee's testimony reveals that Kwon was cognizant of the fact that TerraUSD, being a stablecoin, couldn't be utilized as a legitimate payment method.
In a twist, Terra CFO Han Chang-joon has been extradited from Montenegro to South Korea, indicating an impending investigation by Korean authorities.
The unfolding events cast a shadow of potential legal repercussions for Terraform Labs and its founders. The cryptocurrency community eagerly awaits further details as the investigation continues to unfold. Stay tuned for updates on this evolving story.
#TerraLunaClassic #Terraform #TerraUSD #DoKwon #SouthKorea
#Terraform Labs Fights Back: $5.3 Billion SEC Fine Faces $1 Million Counterpunch
Terraform Labs (#TFL ) is throwing punches back at the SEC's hefty $5.3 billion fine for Do Kwon's alleged fraud with #TerraUSD (#UST ). Their lawyers argue the penalty should be slashed to just $1 million, a 99% reduction.
The crux of their defense? The Luna Foundation Guard (LFG), not TFL, held the funds from the UST sales. TFL's lawyers claim the SEC should have pursued LFG directly for disgorgement (returning those funds).
This counters the SEC's demands for $4.7 billion in disgorgement and prejudgment interest, plus $520 million in civil penalties.
This legal battle adds another layer to the Terraform Labs saga. The company and Do Kwon were found guilty by a jury in April, leading to his current extradition fight in Montenegro.
The ripple effects of Terraform Labs' collapse in 2022 are still felt, with companies like BlockFi, Celcius, and #FTX all facing bankruptcy.
Will TFL's legal counteroffensive land? Only time will tell, but this fight is far from over.
Terraform Labs (#TFL ) is throwing punches back at the SEC's hefty $5.3 billion fine for Do Kwon's alleged fraud with #TerraUSD (#UST ). Their lawyers argue the penalty should be slashed to just $1 million, a 99% reduction.
The crux of their defense? The Luna Foundation Guard (LFG), not TFL, held the funds from the UST sales. TFL's lawyers claim the SEC should have pursued LFG directly for disgorgement (returning those funds).
This counters the SEC's demands for $4.7 billion in disgorgement and prejudgment interest, plus $520 million in civil penalties.
This legal battle adds another layer to the Terraform Labs saga. The company and Do Kwon were found guilty by a jury in April, leading to his current extradition fight in Montenegro.
The ripple effects of Terraform Labs' collapse in 2022 are still felt, with companies like BlockFi, Celcius, and #FTX all facing bankruptcy.
Will TFL's legal counteroffensive land? Only time will tell, but this fight is far from over.