The Terra (LUNA) investigation, which caused billion-dollar losses to cryptocurrency investors, has come to an end.
According to yesterday's news, the SEC reached an agreement worth $4.47 billion with Do Kwon and Terraform Labs.
The SEC-Terra agreement includes $3.58 billion in compensation and $420 million in penalties.
While this agreement had a great impact in the cryptocurrency industry, Coinbase Chief Legal Officer (CLO) Paul Grewal criticized the SEC's $4.47 billion agreement with Do Kwon and the now-bankrupt Terraform Labs.
It’s predictably on-brand to tout a settlement with Kwon and the now-bankrupt Terraform totaling $4.7 billion. But the settlement just makes the SEC an unsecured creditor in the BK and only orders Kwon to hand over $7 million of assets he actually has. There’s zero meaningful… https://t.co/x4AFd8gPXs
— paulgrewal.eth (@iampaulgrewal) June 12, 2024
Evaluating the SEC-Terra agreement from the X account, Paul Grewal criticized the SEC for its approach to the case and stated that it did not provide any assistance to the Terra (LUNA) victims.
The Coinbase CLO also pointed out that Kwon's assets are only $7 million compared to the amount of the deal.
Apart from Coinbase CLO Paul Grewal, Chainlink (LINK) community lead Zach Rynes also expressed his displeasure that the settlement was paid to the SEC instead of the aggrieved people affected by the collapse of Terra.
Assuming Terraform Labs actually has $4.47 billion to pay… why is that capital going to a soulless government agency vs being used to compensate Terra’s victims?
Is this what ‘protecting investors’ is supposed to look like? If so, I’d like to opt out, thanks https://t.co/nvSdJqnU2i
— Zach Rynes | CLG (@ChainLinkGod) June 12, 2024
*This is not investment advice.
