The highest indebted 32-year-old in the world?

The highest indebted 32-year-old in the world?
View of a part of Podgoricas, the capital of Montenegro. Image of Raymond Zoller via Flickr.com, tailored to the format for the blog, license: Creative Commons BY-SA 2.0

A sad record: Do Kwon’s Terraform Labs, author of the collapsed cryptocurrency Terra (Luna), is sentenced to a huge punishment – presumably for the highest penalty payment for securities fraud of all time.

There was a time once when you could buy an entire country with $ 4.4 billion. Today Mr. and Mrs. KWO from South Korea cannot even pay the debt of your son’s company, which is stranded after an adventurous roller coaster ride through the crypto world in Montenegro.

At the end of last week, Do Kwon’s company Terraform Labs agreed with the US Stock Exchange Supervisor SEC on a comparison: Terraform Labs and Thu Kwon agree to a payment of $ 4.5 billion-and it looks like, do Kwon got away with a blue eyes, or to put it less euphemistic: he still has his eyes and is freedom.

Do Kwon and his company Terraform Labs founded the cryptocurrency Terra (Luna). The algorithmically generated StableCoin VAT, who collapsed in autumn 2022. The collapse of stablecoin and cryptocurrency destroyed around $ 40 billion in values ​​and crashed a cascade that culminated in the Implosion of the FTX stock exchange. From all the daring crazy, which distinguished the long defi summer 2021/22, Terra emerged as particularly bold. The Sec Kwon and his company, according to Director Gary Gensler, personally threw “one of the largest securities in US history” and filed a lawsuit.

After an arrest warrant against Do Kwon was issued in South Korea, he fled to the Balkans to get to Dubai with a fake passport from there. However, he was arrested at Podgorica Airport. A court sentenced him to a punishment of four months about the forawes of an ID card. Since then, after payment of a deposit, he has been at large, but is still waiting for the final judgment on its delivery with limited freedom of movement. The country’s highest court has approved them both to South Korea or the United States, but where and when still depends on the Juszizizi Ministry.

Meanwhile, he was guilty of massive securities fraud in the United States. The now agreed penalty is made up of $ 3.5 billion in reimbursement, over $ 460 million in interest and $ 420 million as a civil law punishment. But do Kwon only have to pay a part of them themselves, about $ 200 million. The rest of the terraform is wearing Labs, which, according to an bankruptcy registration, has only $ 150 million in assets.

Another part of the punishment is that Do Kwon and Terraform Labs are no longer entitled to buy or sell cryptocurrencies and tokens, including those that are the terra ecosystem or. whose debris belong. The SEC acts a little like a corner of the corpse: it imposes an absurd unrealistic penance that exceeds what is to be distributed in order to make sure that the creditors that represent them-that is probably US investors-still get what to get. The requirement not to buy or sell assets indicates this – it prohibits Do Kwon and its company in fact to pay other creditors.

Of course, it would be exciting whether do Kwon is able to operate his debts. It would be possible. The young man could actually have many hundred million dollars in cryptocurrencies on memory sticks, laptops, in encrypted online wallets or brain wallets; He could even climb a flight towards Dubai as a freelance man with his own passport towards Dubai-and if he made a lot of profit from the Terra disaster, even if he has paid the penalty and if no more.