TL; DR
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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 May, a Manhattan jury found that Kwon and Terraform Labs misled investors about the success and stability of the Terra blockchain before it imploded, leaving investors $40 billion in the hole.
Of the $4.5 billion owed, Kwon is personally liable to pay $204 million, which the SEC said would “send an unmistakably deterrent message.”
But here’s the thing:
It makes sense that the company power Have $4.3 billion in government bonds (i.e. $4.3 billion in BTC, ETH, gold, USD, or anything else of value).
And that a bankrupt estate currently has control over the assets they still have, and can pay them back.
But it raises two big questions…
First, shouldn’t that money go straight back to the investors?
Maybe the ultimate plan is for the SEC to distribute it, giving investors ~$0.10 per dollar.
Secondly, how in the hell Do Kwon has $204 million?
(It’s not like you can work in a McDonalds in Montenegro and make that much money in a year).
If Do Kwon comes up with the money (which is needed within 30 days), you seriously wonder how many more crypto assets he has.
Sounds like justice, but we’re just as confused as you are.
