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Thoughts tagged "SEC"

Short thoughts, notes, links, and musings by Molly White. RSS

apparently preventing fraud is “anti-crypto”.

according to this Fortune headline, the SEC going after fraud and deceptive business practices after a company publicly announced they were going to breach a previous agreement with the agency is an “anti-crypto campaign”

According to the Wells Notice, viewed by Fortune, the SEC plans to formally accuse Unicoin of violations related to fraud, deceptive practices, and the offering and sale of unregistered securities, although the letter did not specify the exact violations.

Still, because of its novel approach, Konanykhin toldFortunethat the company has been subject to several SEC investigations, though the latest is the first to result in a Wells Notice. He said that the company had entered into a so-called standstill agreement with the SEC earlier this year not to conduct an ICO or go public, but Konanykhin said he decided to breach the agreement after Trump won the recent election. Unicoin had previously filed paperwork with the agency announcing its intent to go public through a reverse merger.

This is particularly hilarious given that Fortune has skewered Gary Gensler for failing to go after the FTX, Celsius, and Terra frauds.

Gary Gensler blew it again. After his agency failed to warn investors about Terra and Celsius—whose collapses this spring sparked a trillion-dollar investor wipeout—the Securities and Exchange Commission chair allowed an even bigger debacle to unfold right under his nose. I’m talking, of course, about the revelation this week that the $30 billion FTX empire was a house of cards and that its golden boy founder, Sam Bankman-Fried, is the crypto equivalent of Theranos’s Elizabeth Holmes.

Schrödinger’s regulator can’t go after fraud before the company collapses, but if it collapses and the SEC didn’t warn us, they failed.

interesting, Roger Stone deleted one of his tweets shilling a "MAGA Memecoin" after I pointed out that these tweets likely violate SEC rules

Tweet by Roger Stone (@RogerJStoneJr) Donald Trump has at least $2M in @MAGAMemecoin in his crypto wallet - get yours- this cryptocurrency is going UP! -The announcement of our partnership gained us double digit growth TODAY Tweeted at 2:50 AM · Apr 18, 2024

most of his other promo tweets remain, though, and have similar issues

The SEC is asking the judge in the Terra lawsuit to order $4.2 billion in disgorgement, a $420 million penalty against Terraform Labs, and a $100 million penalty against Do Kwon.

PLAINTIFF’S MOTION FOR FINAL JUDGMENT AGAINST DEFENDANTS Plaintiff Securities and Exchange Commission (“SEC”) respectfully moves the Court to enter final judgment against Defendants Terraform Labs PTE LTD. and Do Hyeong Kwon (collectively, “the Defendants”). On April 5, 2024, the jury returned a verdict against the Defendants on all counts. For the reasons set forth in the SEC’s memorandum of law and the accompanying declarations of Avron Elbaum and Donald Battle, submitted herewith, the Court should (1) enjoin Defendants from further violation of Sections 5 and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; (2) jointly and severally order them to pay disgorgement of $4,192,147,847 plus $545,748,909 in prejudgment interest; (3) ordering Terraform and Kwon to pay a $420 million and a $100 million civil penalty, respectively; (4) imposing a conduct-based injunction on Defendants, and an officer-and-director bar on and a sworn accounting from Kwon; and (5) holding that the fraud- related monetary remedies imposed on Terraform are non-dischargeable in bankruptcy, and enter final judgment.

They also want Kwon banned from serving as an officer or director of a publicly traded company.

Kwon has opposed any injunction or disgorgement against him, and says that the potential penalties should be somewhere around $250,000–$300,000.

Verdict against Terraform Labs and Do Kwon, responsible for the Terra/Luna algostablecoin collapse in May 2022.

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION Plaintiffs, v TERRAFORM LABS PTE. LTD. and DO HYEONG KWON, Defendant. Verdict 1. On the SEC's first claim, under Section 17, we the jury find defendant Terraform Labs Pte. Ltd. ("Terraform"): Liable [If you answer "Liable" to Question 1, answer Question 2. Otherwise skip to Question 3.] 2. Having found Terraform liable on the SEC's first claim, we the jury find that Terraform acted [choose the highest you found]: Recklessly 3. On the SEC's first claim, under Section 17, we the jury find defendant Do Hyeong Kwon ("Kwon"): Liable [If you answer "Liable" to Question 3, answer Question 4. Otherwise, skip to Question 5.J 4. Having found Kwon liable on the SEC's first claim, we the jury find that Kwon acted [choose the highest you found]: Intentionally 5. On the SEC's second claim, for intentional or reckless violation of Rule 10b-5, we the jury find defendant Terraform: Liable

6. On the SEC's second claim, for intentional or reckless violation of Rule 106-5, we the jury find defendant Kwon: Liable [If you answered "Not Liable" to Question 5, do not answer question 7. If you answered "Liable" to Question 5, proceed to Question 7.] 7. On the claim for control person liability regarding Terraform's violation of Rule 10b-5, we the jury find defendant Kwon: Liable FOREPERSON Date: 04/05/24

Verdict in SEC v. Terraform Labs

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