A Look Inside the Largest Crypto Firm Paying Billions in Settlement

(VitalNews.org) – Binance is the largest cryptocurrency company that has recently run into legal trouble and ended up paying out a hefty settlement.

Sam Bankman-Fried and Changpeng Zhao, the founders of the company, admitted to fraud and settled with the United States for several billion dollars. The “top villain” of this case was considered to be Do Kwon for breaking down the entire sector with his “dollar-pegged stablecoin.”

Do Kwon was seeing success in his company Terraform Labs where he was behind one of the most popular U.S. stablecoins on the planet, and his coins were worth tens of billions of dollars. Kwon even released a statement right before the collapse of the business stating that he would be naming his daughter Luna “after his greatest invention.”

Cryptocurrencies are usually backed up by cash and other assets that would match the value of the tokens, but Kwon’s business coins were only backed by complex code. When his algorithm failed in 2022, this cost its investors over forty billion dollars in market value just overnight. It ultimately led to losses for multiple investors and also contributed to the collapse of the hedge fund Three Arrows Capital.

Since the collapse of his business, the United States Civil, criminal, and bankruptcy courts have been cleaning up the mess. Just this week a judge signed off on Do Kwon and Terraform Labs being able to settle with the United States Securities and Exchange Commission for four and a half billion dollars.

Terraform Labs and Kwon remained in bankruptcy, and the entire company only has one hundred and fifty million dollars in assets, which means that whether or not the company can pay for the dues is unknown.

Following this, Binance’s founder was sentenced to four months in prison, the FTx founder was sentenced to twenty-five years in prison, and the Celsius CEO started his jury trial this year. Judges in the US are now punishing crypto criminals who have cost companies and retail investors billions of dollars. As of now, Kwon is held in a legal and social purgatory in the Balkans.

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