TL;DR
Yesterday, Terraform Labs and its former CEO, Do Kwon, agreed to settle their SEC fraud case…for $4.5 billion.
Full Story
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 buyers in regards to the success and stability of the Terra blockchain earlier than it imploded, leaving buyers $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 sensible that the corporate might need $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 at present has management over no matter belongings they do have and can have the ability to pay that again.
However it raises two massive questions…
Firstly, shouldn’t that cash be going again to buyers instantly?
Possibly the last word plan is for the SEC to distribute it giving buyers ~$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 type of money in a 12 months).
If Do Kwon comes up with the money (which is required inside 30 days), it critically makes you surprise what number of extra crypto belongings he has.
Seems like justice – however we’re as confused as you might be.
