đ¨ââď¸ SEC reaches a settlement with Terraform Labs, and the judge approves its bankruptcy liquidation application
The latest developments show that Terraform Labs has reached a settlement in the legal dispute with the U.S. Securities and Exchange Commission (SEC) and has obtained formal approval from the court to end its operating plan.
Although the lawsuit seems to have come to an end, it may not be entirely good news for investors, because investors' interests have also suffered certain losses!
U.S. Bankruptcy Judge Brendan Shannon affirmed Terraform's bankruptcy plan, believing that it was a "welcome alternative" to litigation for investor losses, and approved the plan in Wilmington, Delaware. This not only puts an end to Terraform's bankruptcy proceedings that began in January this year, but also means that the company will start a new chapter.
In April this year, Terraform Labs was found responsible for defrauding investors and agreed to pay a $4.47 billion fine to the SEC. Its co-founder Do Kwon also needs to pay an additional $110 million settlement and $14.3 million in interest to compensate investors who suffered losses. At the same time, Do Kwon must transfer assets to the Terraform bankruptcy account for fines and trust liquidation.
Terraform said that in the bankruptcy liquidation, they may pay between $184.5 million and $442.2 million to cryptocurrency buyers and other stakeholders. But the total amount of eligible cryptocurrency losses is still "unestimated."
It is worth noting that the SEC will only receive the settlement money after Terraform Labs fully compensates for all losses in the liquidation process, indicating that the SEC may not be able to recover the money.
đŁ Conclusion:
The bankruptcy settlement of Terraform Labs sounded the alarm for the cryptocurrency industry, reminding investors not to ignore potential risks while pursuing growth potential.
On the other hand, regulators and legislators also need to work closely with the industry to formulate effective rules, ensure market integrity, and promote the healthy growth of the industry.
In short, the entire industry and its participants should learn lessons and work together to create a safer, transparent and sustainable cryptocurrency market environment.
đŹ What do you think of the ending of Terraform Labs? Do you think the SEC can recover the settlement money from this case?Leave your opinions and views in the comments section!
