Ki Young Ju, CryptoQuant CEO, has criticized the US SEC over their decision to receive a $4.5 billion settlement from Terraform Labs.
The US District Judge ultimately approved the $44.5 billion settlement between the US Securities and Exchange Commission (SEC), Terraform Labs, and Do Kwon on Thursday, June 13.
The agreement will result in Do Kwon and Terra paying billions in fines and penalties to the SEC while prohibiting them from participating in the crypto industry. Terraform Labs will be required to pay a total of $3.6 billion in disgorgement, a civil penalty of $420 million, and approximately $467 million in prejudgement interest by the terms of the agreement.
In addition to Terraform Labs, Do Kwon has consented to pay $110 million in disgorgement, $80 million in civil penalties, and $14.3 million in prejudgment interest. SEC chair Gary Gensler issued a statement on Thursday that read:
“This case affirms what court after court has said: The economic realities of a product — not the labels, the spin, or the hype — determine whether it is a security under the securities laws. Terraform and Do Kwon’s fraudulent activities caused devastating losses for investors, in some cases wiping out entire life savings. Their fraud serves as a reminder that, when firms fail to comply with the law, investors get hurt.”
CEO of CryptoQuant criticized US judicial system over Terraform judgment
CEO Ki Young Ju of CryptoQuant criticized the US government’s approach to financial crimes, asserting that obtaining $4.5 billion from Do Kwon would be impossible without him perpetrating an economic crime.
Ju observed that government settlements frequently prioritize financial advantages over law enforcement, which, in his opinion, indicates a dysfunctional American judicial system. Ju underscored that the United States, despite its role as a global enforcer, seizes criminal proceeds without compensating international victims. He also observed that Do Kwon, a Korean national, is implicated in the controversy.
David Hoffman, a prominent figure associated with Bankless, conveyed profound apprehensions about the possibility of Terraform Labs being required to pay a $4.5 billion fine to the SEC. Hoffman conjectured that if Terraform Labs possesses $4.5 billion in assets and this sum is paid exclusively as a fine to the SEC rather than compensating users who experienced financial losses, it would be a remarkable illustration of agency corruption in recent history.