Terraform Labs and its founder, Do Kwon, have reached a settlement with the US Securities and Exchange Commission (SEC) following fraud allegations surrounding the collapse of the TerraUSD stablecoin, Reuters reports. The agreement, which was disclosed on the court's website, was reached after a jury found Kwon and Terraform Labs liable on civil fraud charges in April.
The SEC accused the company and Kwon of misleading investors in 2021 about the stability of TerraUSD, a stablecoin designed to maintain its value at $1. Additionally, they were accused of falsely claiming that Terraform's blockchain had been used in the popular Korean mobile payment app.
The settlement, although its terms have not yet been disclosed, represents an important development in the ongoing legal saga between Terraform Labs, Do Kwon, and the SEC. US District Judge Jed Rakoff in Manhattan requested supporting documents from both parties by June 12.
Initially, the SEC sought significant penalties, including the waiver of $5.3 billion in alleged ill-gotten gains from…
Stable coin
Stablecoins
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this term Sales, fines totaling hundreds of millions of dollars, and bans on dealing in securities of crypto assets for both Kwon and Terraform Labs.
The collapse of TerraUSD and Luna, a token closely linked to TerraUSD, impacted cryptocurrency markets in May 2022, resulting in an estimated loss of over $40 billion for investors. Despite the settlement, Kwon still faces related criminal charges in both the United States and South Korea, although he maintains his innocence.
The story of Kwon's extradition recently took a new turn after the Montenegrin Court of Appeal referred the case back to the Supreme Court for retrial. This action came after arguments by Kwon's attorneys that questioned the validity of the initial ruling.
Kwon's extradition remains uncertain
The decision to extradite Kwon was returned to the Supreme Court of Montenegro after the Court of Appeal granted an appeal by his legal team. The Court of Appeal accepted the arguments presented by Kwon's lawyers, overturned the previous decision of the Supreme Court and ordered a retrial.
The initial ruling by the Podgorica Supreme Court, dated April 8, 2024, allowed Kwon's extradition but was criticized for lacking conclusive facts and good reasons. The Supreme Court must now ensure that Kwon's consent to extradition is voluntary, informed and irrevocable.
The United States requested Kwon's extradition, charged him with eight counts and expressed its willingness to try him in absentia. Kwon disappeared from the public eye after the disastrous collapse of TerraUSD and Luna
Digital currencies
Digital currencies
Using cryptography, virtual currencies, known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, not subject to the supervision of a central authority. Therefore, cryptocurrencies operate by a decentralized nature which makes them theoretically immune to government interference. The term cryptocurrency is derived from the origin of cryptographic techniques used to secure the network.
Using cryptography, virtual currencies, known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, not subject to the supervision of a central authority. Therefore, cryptocurrencies operate by a decentralized nature which makes them theoretically immune to government interference. The term cryptocurrency is derived from the origin of cryptographic techniques used to secure the network.
Read this term In 2022, which wiped out nearly $37 billion from the cryptocurrency market and led to several bankruptcies. He was later arrested in Montenegro.
Terraform Labs and its founder, Do Kwon, have reached a settlement with the US Securities and Exchange Commission (SEC) following fraud allegations surrounding the collapse of the TerraUSD stablecoin, Reuters reports. The agreement, which was disclosed on the court's website, was reached after a jury found Kwon and Terraform Labs liable on civil fraud charges in April.
The SEC accused the company and Kwon of misleading investors in 2021 about the stability of TerraUSD, a stablecoin designed to maintain its value at $1. Additionally, they were accused of falsely claiming that Terraform's blockchain had been used in the popular Korean mobile payment app.
The settlement, although its terms have not yet been disclosed, represents an important development in the ongoing legal saga between Terraform Labs, Do Kwon, and the SEC. US District Judge Jed Rakoff in Manhattan requested supporting documents from both parties by June 12.
Initially, the SEC sought significant penalties, including the waiver of $5.3 billion in alleged ill-gotten gains from…
Stable coin
Stablecoins
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that are designed to maintain a stable value. A greater emphasis on stability rather than volatility can be a big draw for some investors. Many individuals can shy away from the high volatility and uncertainty that cryptocurrencies represent compared to other traditional assets. Stablecoins control this volatility by pegging them to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this term Sales, fines totaling hundreds of millions of dollars, and bans on dealing in securities of crypto assets for both Kwon and Terraform Labs.
The collapse of TerraUSD and Luna, a token closely linked to TerraUSD, impacted cryptocurrency markets in May 2022, resulting in an estimated loss of over $40 billion for investors. Despite the settlement, Kwon still faces related criminal charges in both the United States and South Korea, although he maintains his innocence.
The story of Kwon's extradition recently took a new turn after the Montenegrin Court of Appeal referred the case back to the Supreme Court for retrial. This action came after arguments by Kwon's attorneys that questioned the validity of the initial ruling.
Kwon's extradition remains uncertain
The decision to extradite Kwon was sent back to the Supreme Court of Montenegro after the Court of Appeal granted an appeal by his legal team. The Court of Appeal accepted the arguments presented by Kwon's lawyers, overturned the previous decision of the Supreme Court and ordered a retrial.
The initial ruling by the Podgorica Supreme Court, dated April 8, 2024, allowed Kwon's extradition but was criticized for lacking conclusive facts and good reasons. The Supreme Court must now ensure that Kwon's consent to extradition is voluntary, informed and irrevocable.
The United States requested Kwon's extradition, charged him with eight counts and expressed its willingness to try him in absentia. Kwon disappeared from the public eye after the disastrous collapse of TerraUSD and Luna
Digital currencies
Digital currencies
Using cryptography, virtual currencies, known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, not subject to the supervision of a central authority. Therefore, cryptocurrencies operate by a decentralized nature which makes them theoretically immune to government interference. The term cryptocurrency is derived from the origin of cryptographic techniques used to secure the network.
Using cryptography, virtual currencies, known as cryptocurrencies, are virtually counterfeit-proof digital currencies built on blockchain technology. Blockchain technology consists of decentralized networks, not subject to the supervision of a central authority. Therefore, cryptocurrencies operate by a decentralized nature which makes them theoretically immune to government interference. The term cryptocurrency is derived from the origin of cryptographic techniques used to secure the network.
Read this term In 2022, which wiped out nearly $37 billion from the cryptocurrency market and led to several bankruptcies. He was later arrested in Montenegro.