Terraform | Crypto

Jane Street has filed to dismiss Terraform’s insider trading suit, arguing the reasons for Terra’s collapse have already been litigated. Trading firm Jane Street has asked a US court to toss a lawsuit brought by the administrator of the bankrupt Terraform Labs, accusing the company of insider trading that worsened the collapse of the Terra ecosystem. In a motion to dismiss filed in a Manhattan federal court on Thursday, Jane Street argued Terraform’s suit was an attempt “to extract cash from Jane Street to foot the bill for a fraud that Terraform itself perpetrated on the market.” “Terraform now claims it was victimized by Jane Street’s trading,” it added. “The problem with this theory is that Terraform’s fraud scheme — in which Jane Street had no involvement — has already been prosecuted, adjudicated, and punished.” Read more

A fresh $4 billion lawsuit tied to Terraform Labs’ collapse is becoming a test of what a stablecoin’s $1 promise means amid the adoption of dollar tokens as payment rails. The case is about more than who pays for a 2022-era failure. It also decides whether a “stable” price can be maintained by arrangements that […] The post Terraform’s $4 billion Jump lawsuit exposes the hidden “shadow trading” that may be artificially holding up stablecoin prices appeared first on CryptoSlate.

A federal judge heard statements from some of Terraform Labs’ and Do Kwon’s victims for hours before deciding on the co-founder’s sentence. Do Kwon, the co-founder of Terraform Labs, has been sentenced to 15 years in prison after pleading guilty to wire fraud and conspiracy to defraud. In a Thursday hearing in the US District Court for the Southern District of New York, Judge Paul Engelmayer ordered that Kwon serve 15 years in prison for his role in the collapse of Terraform, which wiped out about $40 billion from the crypto market in 2022. He will receive credit for time served in the US and 17 months of pre-extradition custody. Prior to making his decision on sentencing, Engelmayer heard from some of Terraform’s victims and questioned what kind of justice Kwon might face in his native South Korea, where authorities are also building a case against him. Read more

A sentencing recommendation said that Do Kwon had caused more losses than Sam Bankman-Fried, Alex Mashinsky and Karl Sebastian Greenwood combined. US attorneys representing the federal government have requested that a judge send Terraform Labs co-founder Do Kwon to prison for 12 years at his sentencing hearing next week. In a Thursday filing in the US District Court for the Southern District of New York, prosecutors asked that a judge sentence Kwon “to a term of twelve years’ imprisonment and finalize the forfeiture of his criminal proceeds.” The filing came about four months after the Terraform co-founder pleaded guilty to two counts of wire fraud and conspiracy to defraud. Read more