Terraform Labs has agreed to pay the United States Securities and Exchange Commission (SEC) approximately $4.47 billion as part of a settlement with the securities regulator. This settlement comes after Terraform Labs and its co-founder were held responsible for the collapse of the Terra ecosystem, resulting in the loss of $40 billion in investor assets.
Chris Amani, CEO of Terraform Labs, has announced that the company will be shutting down operations following the settlement. The company’s plan includes selling key projects within the Terra ecosystem and transferring control of the Terra blockchain to the community.
In related news, Ripple’s lawyers have requested the court to consider an “appropriate” civil penalty in its case with the SEC following the settlement between the regulator and Terraform Labs. The SEC has demanded that Ripple pay around $2 billion in disgorgement, prejudgment interest, and civil penalties. Ripple, on the other hand, argues that it should only be liable for a $10 million penalty.
However, the SEC has refuted Ripple’s argument, stating that the comparison with Terraform’s civil penalty was not valid. The SEC calculated that Ripple’s civil penalty would amount to $102.6 million if the same ratio were applied to Ripple’s gross profits.
President Joe Biden has announced his picks for leadership positions at financial regulators, including the SEC, FDIC, Treasury Department, and the Financial Stability Oversight Council. These nominations aim to bring new leadership to these critical financial institutions.
In another development, Turkey is planning to implement a 0.03% transaction tax on cryptocurrency trading to ensure comprehensive financial regulation. This move comes after the Turkish government previously denied any plans to tax crypto and stock gains.
Australia’s largest stock exchange, the Australian Securities Exchange (ASX), has approved its first spot Bitcoin exchange-traded fund (ETF). The VanEck Bitcoin ETF (VBTC) will begin trading on June 20, marking a significant milestone for cryptocurrency investment in Australia.