Collapsed crypto company Terraform Labs has filed for Chapter 11 bankruptcy in the United States. The firm submitted a voluntary petition to the U.S. Bankruptcy Court for the District of Delaware. The document, which was filed on Sunday, indicates Terraform Labs has between 100-199 creditors, owns between $100,000,001-$500 million in estimated assets, and owes between […]
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Disgraced Terraform Labs founder Do Kwon is reportedly asking a judge to delay the U.S. Securities and Exchange Commission’s (SEC) trial to March so he can make an appearance. In a new letter addressed to the court uncovered by Inner City Press, Kwon’s lawyers ask District Judge Jed S. Rakoff to postpone the trial until […]
The post Terraform Labs Founder Do Kwon Asks US Judge To Postpone SEC Trial Amid Extradition Delays: Report appeared first on The Daily Hodl.
The founder of Terraform Labs, the crypto firm behind the Terra (LUNA) collapse has won an appeal in Montenegro over being extradited to the United States. According to a statement from the Montenegro Appeals Court, the decision to extradite Terra founder Do Kwon to the US or South Korea has been overturned. Kwon was initially arrested […]
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Terra (LUNA) founder Do Kwon is staying in Montenegrin custody for at least two more months at the request of the United States and South Korea. According to a new Bloomberg report, Terraform Labs co-founder Do Kwon will be held in Montenegro for two more months as officials from the US and Korea seek charges related […]
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Lawyers for Terraform Labs co-founder Do Kwon have mounted a final attempt to appeal his extradition from Montenegro.
Terraform Labs co-founder Do Kwon has launched his final attempt to appeal a Montenegrin court’s decision that could see him extradited from the country.
In a Dec. 6 report, local state media stated that lawyers for Kwon had officially appealed the Nov. 24 decision from the High Court of Podgorica, which approved that Kwon could be extradited to either the United States or South Korea pending a final decision by the Montenegrin Ministry of Justice.
The Ministry of Justice will now consider the appeal and reexamine the initial extradition order and is currently slated to make a final decision on the matter by Dec. 15.
The extradition of disgraced Terra (LUNA) founder Do Kwon to the US and South Korea has been approved by a court in Montenegro. In a new press release, the Higher Court of Podgorica has ruled that the legal requirements needed for extraditing Kwon to the US and South Korea have been met. “It was established […]
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“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” SEC Chair Gary Gensler iterated.
The United States securities regulator chief has hinted he would be open to a rebooted crypto exchange FTX — as long as its new leadership stays within the bounds of the law.
SEC Chair Gary Gensler’s comments were made in response to reports that Tom Farley, a former president of the New York Stock Exchange, is now in the running to buy the bankrupt cryptocurrency exchange founded by now-convicted fraudster Sam Bankman-Fried.
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” Gensler said in an interview at DC Fintech Week on Nov. 8, according to CNBC. He added:
“Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers or using their crypto assets for your own purposes.”
Farley is the CEO of cryptocurrency exchange Bullish, which was founded in 2021.
Fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group are the other two bidders in the mix to buy FTX, according to a Nov. 8 report by the Wall Street Journal, who cited people familiar with the matter.
3 FTX bidders in the Auction are:
— Sunil (FTX Creditor Champion) (@sunil_trades) November 8, 2023
Bullish - Crypto exchange run by Tom Farley
Figure Technologies - fintech start up and
Proof Group - crypto venture-capital firm
Three bidders will be leading a consortium
The winner could restart the exchange after its planned exit from bankruptcy next year, according to the WSJ report.
Meanwhile, in light of Bankman-Fried’s conviction, Gensler said the cryptocurrency industry is still rife with fraudsters and suggested more work needs to be done to keep them away from investors.
“Think about how many actors in this space are not complying right now with international sanctions and money laundering laws and are using crypto for nefarious or bad actions. He said, without naming individuals or companies. Gensler added:
“If it’s a non-compliant fraudster, why would we want them in our markets?”
Related: Could regulation have prevented Sam Bankman-Fried’s criminal verdict?
Despite the SEC’s crackdown on the cryptocurrency industry, U.S. representative Tom Emmer has previously called out Gensler and the securities regulator in December for missing the FTX, Terra-LUNA, Celsius and Voyager failures which collectively wiped out billions of dollars from cryptocurrency investors.
JUST IN: US Congressman Tom Emmer says SEC Chair Gary Gensler is as ineffective as he is incompetent.
— Watcher.Guru (@WatcherGuru) November 8, 2023
pic.twitter.com/6EDvRdOfCh
Emmer went as far to suggest Gensler helped Bankman-Fried gain a “regulatory monopoly” on the cryptocurrency industry prior to FTX’s collapse, but the statement wasn’t backed by any evidence.
The SEC is currently battling out lawsuits against Binance, Coinbase and Ripple over alleged securities violations and Grayscale for its application to convert its Bitcoin Trust product into a spot Bitcoin exchange-traded fund.
Magazine: The truth behind Cuba’s Bitcoin revolution — An on-the-ground report
Terraform Labs and its co-founder Do Kwon are asking the Southern District of New York court to strike out parts of the complaint filed by the U.S. Securities and Exchange Commission (SEC). The SEC accuses the collapsed stablecoin issuer and its disgraced former CEO of offering and selling crypto assets that qualify as securities. The […]
The post Do Kwon and Terraform Labs Seek Summary Judgement in SEC Lawsuit, Citing ‘Severe Deficiencies’ in the Case appeared first on The Daily Hodl.
Slack conversations between Terraform Labs' co-founders Do Kwon and Daniel Shin have exposed their contemplation of orchestrating fraudulent transactions on the Terra blockchain.
Terraform Labs co-founder Do Kwon has refuted the significance of Slack messages as evidence, which involved discussions with his co-founder Daniel Shin about manipulating transactions on the Terra blockchain to attract investors.
The United States Securities and Exchange Commission (SEC) included the Slack conversation between the two co-founders, which was dated back to September 2019, in a recent court filing.
The message report suggests the two co-founders were brainstorming strategies to increase investor interest in the Terra blockchain. However, Kwon intended to shape transactions to make them more attractive:
“I can just create fake transactions that look real.”
Kwon further elaborates that these transactions will generate fees and can be gradually phased out as Chai (XCH) grows.
Kwon then appears to attempt to make a pact with Shin to keep the plan confidential. "I wont tell if you wont," he stated.
He further asserted that it will be challenging for individuals to uncover the manipulation tactics.
“All the power to those that can prove its fake,” he states, adding that he will be making every effort to prevent the scheme being exposed:
“Because I will try my best to make it indiscernable.”
However, Kwon refutes the evidence against him, alleging it was taken out of context.
His legal team claim that Kwon and Shin spoke about the possibility of staking LUNA tokens with validators, rather than creating counterfeit Chai transactions:
“Finally, the SEC misstates evidence in its gratuitous effort to prejudice Mr. Kwon in a procedural motion having nothing to do with the merits (or lack of merit) of the SEC’s case.”
“In other words, the SEC’s motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has been unable to get discovery from Mr. Kwon,” Kwon's lawyers added.
Related: Do Kwon converted illicit funds from LUNA to Bitcoin: S.Korean prosecutors
Meanwhile, Kwon's lawyers are pushing a US federal court to reject the SEC's request to extradite him to the US over the collapse of the Terra ecosystem.
Kwon's legal team declared the request as "impossible" due to him being detained in Montenegro with no scheduled release date after being found guilty of passport fraud.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
A popular cryptocurrency trader believes that a controversial altcoin project still has potential for growth. Pseudonymous crypto analyst Altcoin Sherpa tells his 196,400 followers on the social media platform X that Worldcoin (WLD) could surge by more than 11% from its current value. “WLD: I am all out of this one, took the majority of […]
The post Crypto Trader Says Controversial Altcoin Could Surge by Double Digits, Updates Outlook on Biconomy and Terra appeared first on The Daily Hodl.
