{"id":31662,"date":"2024-05-31T10:23:54","date_gmt":"2024-05-31T10:23:54","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/terraform-labs-and-founder-do-kwon-tentatively-settle-with-sec\/"},"modified":"2024-05-31T10:23:54","modified_gmt":"2024-05-31T10:23:54","slug":"terraform-labs-and-founder-do-kwon-tentatively-settle-with-sec","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/terraform-labs-and-founder-do-kwon-tentatively-settle-with-sec\/","title":{"rendered":"Terraform Labs and Founder Do Kwon Tentatively Settle with SEC"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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The U.S. Securities and Exchange Commission (SEC) and Singapore-based Terraform Labs, together with its founder Do Kwon, have agreed a provisional settlement. Accusations of deceiving investors before the 2022 collapse of the TerraUSD stablecoin are addressed by the settlement.<\/p>\n

The specifics of the settlement are yet unknown, according to court filings<\/a> that Reuters quoted. But a jury has already determined that Kwon and Terraform Labs are accountable for civil deception.<\/p>\n

Allegations and Community Reactions<\/h2>\n

The SEC accused Terraform Labs and Kwon of deceiving investors in 2021 about the stability of TerraUSD, which was supposed to maintain its value at $1. Additionally, they allegedly misrepresented that Terraform\u2019s blockchain was used in a popular Korean mobile payment app.<\/p>\n

On the implications of the settlement, the crypto community is divided. While some think it would have a beneficial impact on the price of Terra Classic (LUNC), others are still dubious about the company\u2019s intentions to repay the money.<\/p>\n

The SEC previously ordered that Kwon and Terraform Labs give up $5.3 billion in profits they claimed to have gained illegally from the sale of stablecoins. In addition, the SEC requested that Kwon and the corporation pay $100 million in fines and refrain from trading in \u201ccrypto asset securities.\u201d<\/p>\n

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According to CoinMarketCap, LUNC increased by more than 9% to $0.00012 after the settlement was announced, while LUNA, the new token, increased by more than 13%.<\/p>\n

The SEC estimates that investor losses from the collapse of TerraUSD and Terra Classic in May 2022 were over $40 billion, severely disrupting the cryptocurrency markets. Kwon and his business advocated for far smaller fines, proposing that Terraform Labs pay a maximum punishment of $3.5 million and Kwon pay less than $1 million.<\/p>\n

Kwon, who is being prosecuted in South Korea and the United States, disputes any wrongdoing. He was detained in March 2023 in Montenegro and is still awaiting extradition.<\/p>\n<\/p><\/div>\n

Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) The U.S. Securities and Exchange Commission (SEC) and Singapore-based Terraform Labs, together with its founder Do Kwon, have agreed a provisional settlement. Accusations of deceiving investors before the 2022 collapse of the TerraUSD stablecoin are addressed by the settlement. The specifics of the settlement are yet […]<\/p>\n","protected":false},"author":34,"featured_media":31663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/31662"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=31662"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/31662\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/31663"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=31662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=31662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=31662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}