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 concerning 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 smart that the corporate may need $4.3B in treasury belongings (i.e. $4.3B value 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 be capable of pay that again.
Nevertheless it raises two massive questions…
Firstly, shouldn’t that cash be going again to buyers immediately?
Perhaps 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’ll be able to work in a Montenegro McDonalds and make that sort of money in a 12 months).
If Do Kwon comes up with the money (which is required inside 30 days), it critically makes you marvel what number of extra crypto belongings he has.
Seems like justice – however we’re as confused as you’re.
