TL;DR
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Yesterday, Terraform Labs and its former CEO, Do Kwon, agreed to settle their SEC fraud case…for $4.5 billion.
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Yesterday, Terraform Labs and its former CEO, Do Kwon, agreed to settle their SEC fraud case…for ~$4.5 billion.
In Might, a Manhattan jury discovered that Kwon and Terraform Labs misled traders in regards to the success and stability of the Terra blockchain earlier than it imploded, leaving traders $40B within the gap.
Of the $4.5B owed, Kwon is personally liable to pay $204 million, which the SEC mentioned would “ship an unmistakable deterrent message.”
However right here’s the factor:
It is smart that the corporate may have $4.3B in treasury belongings (i.e. $4.3B price of BTC, ETH, gold, USD or one thing else of worth).
And {that a} chapter property presently has management over no matter belongings they do have and can be capable to pay that again.
Nevertheless it raises two huge questions…
Firstly, shouldn’t that cash be going again to traders instantly?
Possibly the last word plan is for the SEC to distribute it giving traders ~$0.10 on the greenback.
Secondly, how within the heck does Do Kwon have $204M?
(It’s not like you possibly can work in a Montenegro McDonalds and make that form of money in a 12 months).
If Do Kwon comes up with the money (which is required inside 30 days), it severely makes you surprise what number of extra crypto belongings he has.
Seems like justice – however we’re as confused as you’re.