Tag: Terraform

Terraform Labs Calls $5.3 Billion SEC Fraud-Fine Bid Unjustified – Bloomberg

The US Securities and Exchange Commission claimed in its lawsuit against Terraform and Kwon, the inventor of the failed TerraUSD stablecoin, that the firm’s collapse in 2022 wiped out $40 billion in investor assets and shook the cryptocurrency world. But in a filing Wednesday, Terraform lawyers argued the firm’s “offers and sales of tokens occurred almost entirely outside the US,”…

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Bankrupt Terraform gets OK to hire law firm Dentons, with return of $48 mln from retainer | Reuters

Terraform Labs received a U.S. bankruptcy judge’s permission on Tuesday to hire Dentons to defend the company from a U.S. Securities & Exchange Commission lawsuit, after the law firm agreed to return $48 million that Terraform had pre-paid for legal work. U.S. Bankruptcy Judge Brendan Shannon approved the Dentons hire at a hearing in Wilmington, Delaware, bankruptcy court, finding that…

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SEC goes after bankrupt Terraform Labs’ $166 mln ‘slush fund’ for Dentons | Reuters

The U.S. Securities & Exchange Commission has argued that Terraform Labs should not be allowed to hire law firm Dentons or pay litigation costs for employees during its bankruptcy, taking aim at a $166 million retainer payment to Terraform’s lawyers. The SEC said that Terraform had sent $166 million to Dentons since the start of 2023, and that those transfers…

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Terra Co-Founder Shin, Nine Others Indicted by South Korea – Bloomberg

South Korea indicted Terraform Labs co-founder Daniel Shin along with nine others on multiple charges including violations of capital markets law related to the Terra cryptocurrency project, which imploded last year. Prosecutors froze 246.8 billion won ($184.7 million) in assets from the people so far, Dan Sung Han, the head prosecutor who leads the financial crime investigation department, said at…

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SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes

According to the SEC’s complaint, from April 2018 until the scheme’s collapse in May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions. These included “mAssets,” security-based swaps designed to pay returns by mirroring the price of stocks of US companies, and Terra USD…

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How a Trash-Talking Crypto Bro Caused a $40 Billion Crash – The New York Times

Mr. Kwon dismissed concerns with a taunt: “I don’t debate the poor.” But last week, Luna and another currency that Mr. Kwon developed, TerraUSD, suffered a spectacular collapse. Their meltdowns had a domino effect on the rest of the cryptocurrency market, tanking the price of Bitcoin and accelerating the loss of $300 billion in value across the crypto economy. This…

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Terraform Labs’ legal team resigns after UST collapse

A person familiar with the matter told The Block that legal operations are now being handled by outside counsel. The LinkedIn profiles of Terraform Labs’ general counsel Marc Goldich, chief corporate counsel Lawrence Florio, and chief litigation and regulatory counsel Noah Axler show that all three stopped working for the company in May — all after less than a year at…

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