U.S. Court Approves SEC-Terraform Labs Settlement, but Will Non-U.S. Victims Get Relief?
A U.S. court has approved a settlement between the Securities and Exchange Commission (SEC) and Terraform Labs, CoinDesk reports. As part of the settlement, Terraform Labs and its CEO Do-Hyung Kwon will pay a $4.47 billion settlement to the SEC and will be permanently banned from buying and selling Tera ecosystem cryptocurrencies.
According to Chris Amani, CEO of Terraform Labs, "Terraform Labs has only $150 million in assets. It is unclear how the company will be able to pay the settlement under these circumstances." He said.
The U.S. court's approval of the Kwon Do-hyung-Terraform Labs settlement should be interpreted as a mutual admission that Terraform Labs had concealed funds and committed financial crimes to do so. Otherwise, it is impossible to create $4.5 billion out of thin air.
The reason this is happening is because the US prioritizes government settlements over the law. The U.S., in its role as global policeman, has seized the proceeds of Kwon's crimes, but it cannot escape the suspicion that it is trying to funnel the money (the settlement) into the treasury without compensating victims around the world. This is possible because Kwon's nationality is South Korean, according to an unidentified source.
