<p>Crypto leaders are slamming the SEC’s $4.47 billion settlement with Terraform Labs over last year’s $40 billion Terra investor catastrophe. They argue the deal fails to properly compensate victims.</p> 
<p>According to recent reports, <a href="https://www.cryptotimes.io/2024/06/12/breaking-news-terraforms-resolves-sec-suit-with-4-47b-settlement/" target="_blank" data-type="link" data-id="https://www.cryptotimes.io/2024/06/12/breaking-news-terraforms-resolves-sec-suit-with-4-47b-settlement/" rel="noreferrer noopener">Terraform must pay $3.58 billio</a>n in money gained improperly, $420 million in penalties, and $7 million more in interest. But several top voices say those terms let Terraform off easy.</p> 
<p>However, Coinbase’s chief legal officer Paul Grewal led the criticism, blasting the SEC on X. He noted the settlement only makes the SEC an unsecured creditor in Terraform’s bankruptcy case. Worse, Terra co-founder Do Kwon must surrender just $7 million of his own money.&nbsp;&nbsp;</p> 
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   <p lang="en" dir="ltr">It’s predictably on-brand to tout a settlement with Kwon and the now-bankrupt Terraform totaling $4.7 billion. But the settlement just makes the SEC an unsecured creditor in the BK and only orders Kwon to hand over $7 million of assets he actually has. There’s zero meaningful… <a href="https://t.co/x4AFd8gPXs" target="_blank">https://t.co/x4AFd8gPXs</a></p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1800998381004927096?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 12, 2024</a>
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<p>“There’s zero meaningful relief to fraud victims,” Grewal stated, arguing the deal doesn’t make Terra investors whole after huge losses.</p> 
<p>CryptoQuant’s CEO Ki Young Ju also doubted whether Terraform could actually pay the $4.47 billion given questions about its finances. And Chainlink’s Zach Rynes was upset that the funds would not go directly to affected Terra users.</p> 
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   <p lang="en" dir="ltr">Assuming Terraform Labs actually has $4.47 billion to pay… why is that capital going to a soulless government agency vs being used to compensate Terra’s victims? <br><br>Is this what ‘protecting investors’ is supposed to look like? If so, I’d like to opt out, thanks <a href="https://t.co/nvSdJqnU2i" target="_blank">https://t.co/nvSdJqnU2i</a></p>— Zach Rynes | CLG (@ChainLinkGod) <a href="https://twitter.com/ChainLinkGod/status/1801000922711011562?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 12, 2024</a>
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<p>The settlement awaits a judge’s approval in New York’s federal court. But as regulators try to crack down on cryptocurrency, this deal is fueling worries about whether the regulator’s actions truly prioritize protecting investors or just punishing alleged wrongdoers.</p>

Coinbase CLO and others Slam SEC’s Settlement with Terraform

The Crypto Times

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