Crypto Biz: Bitfarms gets new board after months of power struggles

Bitfarms and Riot Platforms settle months of corporate disputes with board review, while BlackRock moves for changes to Bitcoin ETF withdrawals. 

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Terraform Labs may close products, services in bankruptcy wind-down

Get it before Oct. 30, Terraform Labs tells the third parties it is discussion its wind-down with.

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Do Kwons extradition case goes back to Montenegrin justice minister

According to Montenegros Supreme Court, the US and South Korea had both met the conditions for applying for Do Kwons extradition to face criminal charges.

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Court approves Terraform Labs winding down in bankruptcy hearing

After collapsing in 2022, facing an SEC lawsuit in 2023, and filing for bankruptcy in 2024, many of Terraforms legal cases in the US are beginning to wind down.

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Do Kwon Extradition Paused Again by Montenegro Supreme Court

The Supreme Court of Montenegro has suspended the extradition of Terraform Labs co-founder Do Kwon to South Korea.…

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Montenegrin court delays Do Kwons extradition to South Korea

The Terraform Labs co-founder has been in Montenegro since his arrest in 2023, potentially facing extradition to either his native South Korea or the United States.

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Court Orders Terraform Labs to Reopen Terra Classic Shuttle Bridge and Burn 150M LUNA

A bankruptcy court has ordered Terraform Labs (TFL) to reactivate the Terra Classic (LUNC) Shuttle Bridge and to undelegate and…

The post Court Orders Terraform Labs to Reopen Terra Classic Shuttle Bridge and Burn 150M LUNA first appeared on The Crypto Basic.

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Ripple Cites Terraform Labs' Settlement to Lower Penalty Against It to $10 Million

Ripple Labs is leveraging the recent settlement of the Securities and Exchange Commission (SEC) with Terraform Labs to lower the proposed nearly $2 billion penalty against it to $10 million, a notice of supplemental authority posted yesterday (Thursday) revealed.

A Push to Lower the Settlement Amount

The blockchain company has argued that the hefty $2 billion penalty proposed by the regulator for offering the XRP token to institutions is unreasonable and should be closer to $10 million.

The civil penalty sought by the SEC in Terraform demonstrates the unreasonableness of the civil penalty sought by the SEC in this (Ripples) case, the lawyers of the blockchain company said. As Ripples opposition explained, in comparable (and even more egregious) cases, the SEC has agreed to civil penalties ranging from 0.6% to 1.8% of the defendants gross revenues. Terraform fits that pattern.

Ripple also cited that the allegations against it are different from those against Terraform Labs, which faced charges of civil fraud. Ripple, on the other hand, has only been charged with distributing unregistered securities.

Here, by contrast, the SEC seeks a civil penalty far exceeding that range, even though there are no allegations of fraud in this case and Institutional Buyers did not suffer substantial losses, Ripples lawyers added. Terraform thus confirms that the Court should reject the SECs disproportionate and unprecedented request and that an appropriate civil penalty would be no more than $10 million.

BREAKING: @Ripple files Notice of Supplemental Authority regarding TerraForm Labs Consent Judgment! The SEC v. RIPPLE case could end ANYTIME! #XRP pic.twitter.com/4n5RF5SiHY

A Long-Running Court Battle

Ripple has been fighting a long legal battle with the American regulator. The SEC first moved against the blockchain company in December 2020, alleging the illegal sale of XRP tokens to both retail and institutional investors, raising more than $1.3 billion. According to the regulator, XRP is unregistered securities.

The initial regulatory lawsuit named Ripples CEO, Brad Garlinghouse, and the Co-Founder, Chris Larsen, but charges against them were dropped last October. Last July, the New York federal court ruled that the sale of XRP on exchanges and through algorithms did not violate any American securities law; however, sales to institutions did.

Last March, the SEC proposed $1.95 billion in recovery and civil penalties from the blockchain company, which it heavily opposed.

Meanwhile, on Thursday, a US court approved the settlement between the SEC and Terraform Labs and its former CEO, Do Kwon, for a hefty sum of more than $4.47 billion, which combines recovery and penalty. Kwon, whose extradition fate from Montenegro hangs in the balance, will have to pay over $204 million himself.

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DICT Clarifies eGovchain, Terraform Labs to Pay US SEC $4.5B | Key Points | June 14, 2024

Today's crypto news recap: DICT's egovchain, Do Kwon news, and more on local exchange listings.

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U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement With SEC

A U.S. District Court judge has agreed to a settlement between the Securities and Exchange Commission (SEC), Terraform Labs and its former CEO, Do Kwon, which would have them pay billions in penalties as well as virtually ban them from the crypto industry, according to the court filings. Source: CoinDesk

The post U.S. Judge Signs Off on $4.5B Terraform-Do Kwon Settlement With SEC appeared first on Crypto Breaking News.

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SEC Settles with Terraform Labs and Do Kwon for $4.5 Billion

Terraform Labs and its former CEO, Do Kwon, have agreed to pay about $4.5 billion in recovery and civil penalties to the Securities and Exchange Commission (SEC), thus striking a settlement agreement with the US regulator, according to a court filing yesterday (Wednesday).

Furthermore, Kwon and Terraform Labs would be permanently banned from buying and selling crypto asset securities, including the tokens in the Terra ecosystem.

Another Major Settlement

However, the settlement deal has yet to be approved by US District Court Judge Jed Rakoff of the Southern District of New York (SDNY), who is overseeing the case. The lawyers of the SEC have already filed a letter with the judge for approval.

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 regulatory lawyers wrote.

Out of the total agreed settlement amount of $4,473,828,306, Kwon personally will have to pay at least $204,320,196.

Initially, the US regulator was seeking $5.3 billion in settlement. However, the legal representatives of the defendants countered that with only $1 million in civil penalties and no recovery or injunction.

Kwons Fate Hangs in a Balance

Kwon was known for building Terraform Labs. However, the project's two cryptocurrencies, TerraUSD and Luna, collapsed in 2022, wiping out about $37 billion in value. The collapse of the algorithmic stablecoin triggered the shuttering and collapse of several other cryptocurrency companies.

After his company collapsed, he disappeared immediately from public sight but was arrested in Montenegro last year while traveling with fake travel documents. Both South Korea and the United States have been trying to extradite him. Meanwhile, he was released from the Montenegro prison on bail due to some technical issues in the extradition ruling against him.

The SEC formally charged Kwon and his company with fraud in April of last year. The trial against Kwon in the US proceeded in his absence.

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Terraform Labs to end operations, Terra community will take over

Terraform Labs is ceasing operations after a $4.47 billion settlement with the SEC, transferring control of the Terra blockchain to the community.

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Do Kwon and Terraform Labs Reach Settlement with SEC in Civil Fraud Case: Report

Terraform Labs and its Founder, Do Kwon, have reacheda settlement with the US Securities and Exchange Commission (SEC) followingallegations of fraud surrounding the collapse of the stablecoin TerraUSD,Reuters reported. The agreement, disclosed on a court website, arrived after ajury found Kwon and Terraform Labs liable for civil fraud charges in April.

Criminal Charges Still Pending

The SEC had accused the company and Kwon of misleadinginvestors in 2021 about the stability of TerraUSD, a stablecoin designed tomaintain its value to $1. Additionally, they were accused of falsely claimingthat Terraform's blockchain was utilized in a popular Korean mobile paymentapp.

The settlement, though its terms remain undisclosed,marks a significant development in the ongoing legal saga between TerraformLabs, Do Kwon, and the SEC. US District Judge Jed Rakoff in Manhattan hasrequested supporting documents from both parties by June 12.

Initially, the SEC sought substantial penalties,including relinquishing $5.3 billion in alleged ill-gotten gains fromstablecoin sales, fines totaling hundreds of millions of dollars, anda ban on dealing in crypto asset securities for both Kwon and Terraform Labs.

The collapse of TerraUSD and Luna, a token closelytied to TerraUSD, affected the cryptocurrency markets in May 2022, resulting inan estimated loss of over $40 billion for investors. Despite the settlement,Kwon still faces related criminal charges in both the US and South Korea,though he maintains his innocence.

Kwon's extradition saga recently took a new turn afterMontenegro's Court of Appeal referred the case back to the High Court forretrial. This action followed arguments from Kwon's lawyers that questioned thevalidity of the initial ruling.

Kwon's Extradition Remains Uncertain

The decision to extradite Kwon was returned to the High Court in Montenegro after theCourt of Appeal granted an appeal by his legal team. The Court of Appealaccepted the arguments presented by Kwon's lawyers, canceling the previousdecision by the High Court and mandating a retrial.

The initial ruling from the High Court in Podgorica,dated April 8, 2024, allowed for Kwon's extradition but was criticized forlacking decisive facts and valid reasons. The High Court must now ensure thatKwon's consent to extradition is voluntary, informed, and irrevocable.

The US has requested Kwon'sextradition, filing eight charges against him and expressing a willingness toprosecute him in absentia. Kwon disappeared fromthe public eye following the catastrophic collapse of TerraUSD and Lunacryptocurrencies in 2022, which wiped out nearly $37 billion from the cryptomarket and led to several bankruptcies. He was later arrested in Montenegro.

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Terraform Labs Challenges SEC $5.3B Fine for TerraUSD and Luna Collapse

Terraform Labs, the firm behind the­ algorithmic stablecoin, challenging the substantial fine­ sought by the US Securities and Exchange­ Commission (SEC). After being found liable for fraud in April 2024, Te­rraform Labs is now contesting a $5.3 billion penalty, asserting that most of the­ir operations occurred outside the­ jurisdiction of the United States, according to […]

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Terraform Labs and Do Kwon Held Liable for Securities Fraud by NY Jury

erraform Labs and Do Kwon face a guilty verdict for defrauding investors in a landmark case, highlighting the need for regulatory compliance in the crypto market. (Read More)

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SEC Seeks a Total of $5.3 Billion from Terraform Labs and Do Kwon

The Securities and Exchange Commission (SEC) of the United States is seeking $4.7 billion in disgorgement and prejudgment interest from bankrupt Terraform Labs and its co-founder Do Kwon. The regulator is further seeking civil penalties of $420 million from Terraform and $100 million from Kwon.

The Regulator Seeks a Hefty Sum

The regulators request for monetary recovery and penalties was revealed in a motion it filed last Friday with the US District Court for the Southern District of New York. The motion also seeks a ban on Kwon from serving as an officer or director of a securities issuer. He is also required to provide complete details of all his accounts and assets.

Meanwhile, legal representatives of Terraform and Kwon have filed briefs for potential remedies in the civil case simultaneously, suggesting a maximum monetary penalty of $3.5 million from the company and $800,000 from Kwon.

However, the court has yet to rule on the newly filed motion. In an earlier ruling, the US court found Terraform Labs and Kwon liable for fraud in the case brought by the SEC.

The trial against Kwon in the US proceeded in his absence.

Defendants have not shown remorse for their conduct, nor can there be any doubt that they are in the position where additional violations are not only possible but likely are already occurring, the motion by the SEC noted.

The Court should send an unequivocal message that this sort of brazen misconduct, and Defendants misbegotten attempt to excuse their behavior by crafting new rules and standards of behavior for crypto markets in contravention of the federal securities laws [...] will not be tolerated.

Kwons Fate Hangs in the Balance

Kwon was known for building Terraform Labs. However, the two cryptocurrencies of the project, TerraUSD and Luna, collapsed in 2022, resulting in the wipeout of about $37 billion in value. The collapse of the algorithmic stablecoin triggered the shuttering and collapse of several other cryptocurrency companies.

He disappeared immediately from public sight after the collapse of his company but was arrested in Montenegro last year while traveling with fake travel documents. Both South Korea and the United States have been trying to extradite him. Meanwhile, he was released from the Montenegro prison on bail due to some technical issues in the extradition ruling against him.

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SEC Seeks $5.3B Judgment Against Terraform Labs and Do Kwon

The US Securities and Exchange Commission (SEC) has filed a motion for billions of dollars in disgorgement and civil penalties against Terraform Labs and co-founder Do Kwon. The SEC is seeking $4.7 billion in disgorgement and prejudgment interest, along with $520 million in civil penalties. Terraform and Kwon have proposed lower penalties, and the SEC is also considering additional measures to prevent future violations. (Read More)

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Do Kwon Faces a Gloomy Year in Montenegro’s Notorious Prison System

Do Kwon is in for a grim year In one Of Montenegro’s worst jails.

Continue reading at DailyCoin.

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Terraform Founder Do Kwon in "HELL ON EARTH" in the 'Dangerous and Overcrowded' Montenegro Prisons, which He Could Be Forced to Stay in for 5 YEARS!

Do Kwon, the founder of the now-defunct Terra USD (UST) and Luna (LUNA) cryptocurrencies, could face up to five years in a Montenegrin prison before being extradited to South Korea or the United States.

Kwon is currently under quarantine for COVID-19 and will soon be sharing a cell with other inmates in a Montenegrin prison, according to a report by a local lawyer.

The cell Kwon will be occupying is only 8 square meters and is usually filled with between 10 and 11 people, leaving no room for a bed.

Inmates are only allowed a 30-minute walk in the prison yard each day and can only purchase limited items like cigarettes and coffee.

Kwon's initial arrest in Montenegro was due to presenting false documents, is a crime that carries a penalty of up to five years.

While both South Korea and the United States have requested Kwon's extradition, Montenegro has yet to make a decision.

If Montenegro decides to pursue it, this could be the first of three nations aiming for him to serve time in their prisons.

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Author: Mark Pippen
London News Desk 
Breaking Crypto News 

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Terraform Founder Do Kwon sits in 'Dangerous and Overcrowded' Montengro Prison....

Do Kwon, the founder of the now-defunct Terra USD (UST) and Luna (LUNA) cryptocurrencies, could face up to five years in a Montenegrin prison before being extradited to South Korea or the United States.

Kwon is currently under quarantine for COVID-19 and will soon be sharing a cell with other inmates in a Montenegrin prison, according to a report by a local lawyer.

The cell Kwon will be occupying is only 8 square meters and is usually filled with between 10 and 11 people, leaving no room for a bed.

Inmates are only allowed a 30-minute walk in the prison yard each day and can only purchase limited items like cigarettes and coffee.

Kwon's initial arrest in Montenegro was due to presenting false documents, is a crime that carries a penalty of up to five years.

While both South Korea and the United States have requested Kwon's extradition, Montenegro has yet to make a decision.

If Montenegro decides to pursue it, this could be the first of three nations aiming for him to serve time in their prisons.

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Author: Mark Pippen
London News Desk 
Breaking Crypto News 

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