Showing 14 Result(s)

SEC court win over Terraform and Do Kwon opens door for UST investigation

Terraform Labs’ court loss over Mirror Protocol opens the doors for greater action on the collapse of stablecoin TerraUSD.  Yesterday, the Second Circuit Court rejected Terraform Labs’ appeal against the Securities and Exchange Commission, upholding an earlier decision from the Southern District of New York. The SEC served founder Do Kwon with a subpoena as he prepared to go onstage to speak at Messari’s MainNet event in Manhattan back in November.  In the attempted appeal, Kwon’s lawyers argued that the …

Terraform Labs ordered to cooperate with SEC probe of Mirror Protocol

Terraform Labs and its CEO Do Kwon must comply with Securities and Exchange Commission (SEC) subpoenas related to the Mirror Protocol, according to a ruling on Wednesday from the US Court of Appeals for the Second Circuit.  The SEC is investigating whether Terraform and Kwon were involved in selling unregistered securities through the Mirror Protocol, which lets users trade crypto tokens that represent popular stocks like Apple and Amazon. The regulator served Kwon with papers at Messari’s crypto conference, Mainnet, …

Korean prosecutors summon all Terraform Labs employees: JTBC

Prosecutors in South Korea have summoned all employees of Terraform Labs to investigate the collapse of TerraUSD, the stablecoin known by its UST ticker, according to a report from local television network JTBC on Saturday. Specifically, the Seoul Southern District Prosecutors Office’s joint financial and securities crime investigation team has summoned Terraform employees, JTBC reported, without citing any sources. One unnamed employee, known to have been involved in the initial development of the Terra blockchain in 2019, has reportedly already …

Do Kwon’s plan to rebirth the Terra blockchain gets approved

Quick Take Do Kwon’s proposal to relaunch the Terra blockchain has passed. In total, 65.5% of votes supported the proposal. The governance vote on Do Kwon’s proposal to relaunch the Terra blockchain and create LUNA 2.0 tokens has passed. This will result in the creation of a new blockchain that will airdrop tokens proportionally to those affected, following the sudden collapse of the TerraUSD (UST) algorithmic stablecoin. In total, 65.5% of the total votes supported Kwon’s proposal. Only 13.2% who were …

Terra’s ‘vortex of death’ brings scrutiny from South Korean regulators

South Korea’s financial regulators came together on Tuesday to discuss how to address fallout from this month’s collapse of the TerraUSD stablecoin.  The Financial Supervisory Service (FSS), the Fair Trade Commission (FTC) and the Financial Service Commission (FSC) shared updates following an emergency meeting held at the National Assembly, according to local news reports.  TerraUSD, an algorithmic stablecoin on the Terra blockchain known by its ticker UST, de-pegged from the dollar in catastrophic fashion this month, destroying more than $40 …

Lawsuits aimed at recouping UST/Luna losses test uncharted waters

Quick Take A major South Korean law firm, LKB & Partners, is suing Do Kwon and co-founder Daniel Shin on behalf of five investors. Other investors are also organizing online to launch their own lawsuits; we may end up seeing cases centered around whether TFL represented its products and the risks of investing accurately. This feature story is available to subscribers of The Block News Plus. You can continue reading this News Plus feature on The Block.

Terraform Labs has no tax liabilities in Korea, Do Kwon says

Do Kwon, CEO of Terraform Labs, said today on Twitter that contrary to reports, his company has no tax liabilities in South Korea. Terraform Labs is the core development team working on the Terra blockchain whose native assets, LUNA and UST stablecoin, recently collapsed after a bank run that wiped out billions of dollars of value .  A recent media report suggested that authorities in Korea were investigating Kwon and Terraform Labs in more than $78 million in unpaid corporate …

Pantera Capital cashed out 80% of its Terra investment before UST crash

Pantera Capital, one of the high-profile backers of Terraform Labs, cashed out nearly 80% of its Terra (LUNA) investment well before TerraUSD (UST) collapsed last week. “The market has been fairly frothy over the last year and thus we’d exited the majority of our position before any of this happened,” Joey Krug, co-chief investment officer at Pantera Capital, told The Block. “Roughly 80% over the last year, fairly gradually over time.” Pantera Capital invested at least twice in Terraform Labs …

South Korea revives ‘Grim Reaper’ financial crimes unit to investigate Terra’s collapse

A specialized financial crimes unit has been tasked with investigating last week’s collapse of the Terra blockchain’s main cryptocurrencies while founder Do Kwon faces hefty tax fines, according to South Korean media reports. The group, consisting of prosecutors and employees from the Financial Services Commission and the Financial Supervisory Service, will investigate the methods Terraform Labs used to attract investors, SBS News reported on Wednesday.  The unit’s accuracy and clinical approach has earned it the nickname “Yeouido Grim Reaper,” after …

Terraform Labs’ legal team resigns after UST collapse

The in-house legal team at Terraform Labs resigned shortly after the collapse of Terra’s algorithmic stablecoin wrought havoc on crypto markets. A person familiar with the matter told The Block that legal operations are now being handled by outside counsel. The LinkedIn profiles of Terraform Labs’ general counsel Marc Goldich, chief corporate counsel Lawrence Florio, and chief litigation and regulatory counsel Noah Axler show that all three stopped working for the company in May — all after less than a year …