The administrator alleged Thursday in the U.S. District Court for the Northern District of Illinois, Eastern Division, that Jump had entered into a secret deal to prop up TerraUSD before the coin’s collapse, and later emerged from Terraform’s collapse with billions of dollars in gains. The SEC has previously said in court filings that Jump made about $1 billion in…
Terraform Labs Pte. co-founder Do Kwon says he should get no more than five years in prison in the US for his role in a fraud tied to the $40 billion collapse of the TerraUSD stablecoin in 2022. Kwon pleaded guilty in August to conspiracy and wire fraud and averted a trial after he was extradited to the US from…
The Securities and Exchange Commission today charged Tai Mo Shan Limited with misleading investors about the stability of Terra USD (UST), a purported “algorithmic stablecoin” issued by Terraform Labs PTE Ltd. (Terraform), when UST dropped from its purportedly fixed exchange rate of 1 UST to $1, known as a peg. The Commission further charged Tai Mo Shan with offering and…
The SEC on Wednesday asked a federal judge in New York to approve the settlement. The deal was reached after a jury in April found Terrform and co-founder Do Kwon liable for fraud following a two-week civil trial. Kwon still faces a criminal case over the sale of the firm’s UST stablecoin. Terraform will pay about $3.59 billion plus interest…
In some sense, the Terra result was obvious once the judge allowed the case to go forward: If you think that Terra’s tokens were securities, then of course you are going to find that Terra did securities fraud. This is in part because there is a lot of evidence that Kwon and Terraform were lying to investors about important facts…
A jury in Manhattan found Singapore-based Terraform Labs and its founder Do Kwon liable on civil fraud charges on Friday, agreeing with the Securities and Exchange Commission that they misled investors before their stablecoin’s 2022 collapse shocked cryptocurrency markets. The jury delivered the verdict in federal court after a two-week trial after hearing closing arguments earlier in the day. The SEC accused the…
[SEC trial counsel Devon] Staren said that in Terraform’s first fraud scheme, the company falsely claimed that the Terra blockchain was being used for real-world transactions on the South Korean payment app Chai. “The evidence will show that Do Kwon led the development of the Chai payment system … [and] knew that Korean customers and merchants were using Korean won,…
In this matter, the SEC body recently received regulatory approval from District Judge Jed Rakoff to work with the forces of South Korea to probe further into Terraform Labs and question Daniel Shin, Terraform Labs’ Co-founder. Shin is the founder of Chai Corp and he founded this company in 2019. Evidence showed that Shin was in a mutual relationship with…
A court in Montenegro agreed on Friday to release Do Kwon, a cryptocurrency entrepreneur charged in the U.S. with a multibillion-dollar fraud, on bail of 400,000 euros ($440,320), pending a trial on local charges. *** He was detained with Han Chang-joon, Terraform Labs’ former finance officer, who will also be released on bail of 400,000 euros. The pair were charged…
Crypto entrepreneur Do Kwon’s lawyers say a US regulator’s lawsuit accusing him and Terraform Labs Pte of securities fraud is unfounded, in part, because the stable coin at issue is a currency, not a security. *** The agency said the company illegally offered unregistered securities and carried out a scheme that wiped out at least $40 billion worth of market…