April

Terraform Labs has reportedly agreed to pay $4.47 billion in a settlement with the US Securities and Exchange Commission (SEC). This case marks another major penalty within the crypto industry. However, Ripple and Coinbase legal chiefs have made some crucial comments about the resolution. Ripple, Coinbase seeks cruciality 
Terraform is the company behind the $40 billion collapse of <a href="https://news.todayq.com/sec-claims-victory-in-do-kwon-terrausd-securities-case/" rel="noopener noreferrer nofollow">TerraUSD </a>digital tokens in 2022. As per the report, a New York jury found Terraform and its CEO liable in April for orchestrating a crypto fraud. Documents show that Terraform will pay $4.47 billion in penalties and is prohibited from engaging in crypto asset securities transactions.
Stuart Alderoty, Chief Legal Officer at Ripple in a post stated that “the US SEC is again touting a big penalty. He suggested that the SEC actually will end up a creditor in bankruptcy court. He gave the example of the BlockFi case.&nbsp;
He added that the commission has become a show regulator chasing headlines rather than good policy.
Paul Grewal, Chief Legal Officer Coinbase, also made some crucial comments on the matter. He stated that It’s predictably on-brand to tout a settlement with Kwon and the now-bankrupt Terraform totaling $4.7 billion.&nbsp;
He mentioned that the settlement just makes the SEC an unsecured creditor in the BK and only orders Kwon to hand over $7 million of assets he has. Grewal added that there is zero meaningful relief to fraud victims and this is no way to regulate. What does the commission says about it? 
It is important to note that the commission highlighted that this judgment aims to maximize returns to affected investors and ensure Terraform ceases operations permanently. However, Do Kwon is also ordered to pay $204 million and is banned from serving as an officer or director of any public company.
“If approved, the proposed judgment will send an unmistakable deterrent message to not only those who engage in brazen misconduct, but also to all those who seek to evade the requirements of the federal securities laws by crafting new standards of behavior for crypto assets that fall under the purview of the federal securities laws,” the SEC noted.
As part of the settlement, Terraform must obtain approval for a liquidation plan in its separate Chapter 11 bankruptcy case in Delaware. Additionally, Kwon must transfer at least $204 million to the company’s bankruptcy estate for investor reimbursement.

Ripple, Coinbase legal head slam SEC Terraform settlement

Todayq News

Other articles published on Jun 13, 2024

Bitcoin: Whales make risky $1.3 billion bet as BTC tumbles

According to Santiment, the volume of Bitcoin traded on exchanges has dropped to its lowest point...

Memecoins Vital for Crypto Growth Says Galaxy Digital CEO Michael Novogratz

Digital Yuan Money Laundering Ring Busted in Shaoxing

Bitbot and Cardano's Investors Craving for Rewards as Moonbag Presale Rockets Beyond $2M in Just ...

North Korean cyberattacks on Brazilian fintech firms exposed

Join our free newsletter for daily crypto updates!