Terra | Crypto

Singapore police charge ex-Hodlnaut CEO Zhu Juntao with six counts of fraud by false representation over allegedly misleading statements on the company’s exposure to the Terra/UST crash. Former Hodlnaut CEO Zhu Juntao was charged in Singapore with six counts of fraud by false representation, in a case tied to statements Zhu and Hodlnaut employees allegedly made after the 2022 collapse of the Terra ecosystem. Singapore Police said Zhu, 36, was charged following an investigation by the Commercial Affairs Department and faces three charges under Section 424A(1)(a) read with Section 424A(3) of the Penal Code 1871, as well as three further charges under the same provision read with Section 109. The case centers on alleged false claims about Hodlnaut’s exposure to the TerraUSD (UST) crash, including accusations that Zhu directed staff to issue some of the statements. Read more

Terraform Labs sued Jump Trading and senior executives for $4 billion, alleging the firm manipulated Terra’s ecosystem and unlawfully profited from the crash, the WSJ reported. The administrator of Terraform Labs’ bankruptcy, Todd Snyder, has filed a lawsuit seeking $4 billion in damages from trading company Jump Trading and multiple executives. According to a Friday Wall Street Journal report, the lawsuit alleges that Jump Trading unlawfully profited from and contributed to the 2022 crash of Terra. Alongside the company, the suit is also aimed at its co-founder, William DiSomma, and the former president of the crypto trading department, Kanav Kariya. Terraform Labs and the Terra blockchain ecosystem collapsed in 2022 when its native algorithmic stablecoin, TerraUSD (UST), lost its peg to the US dollar. The stablecoin was backed by a Terra inflationary mechanism, and when the peg was lost, the LUNA token saw an issuance and sell-off shock. The crash led to about $50 billion in losses. Read more

Federal prosecutors are seeking a 12-year prison term for Terraform Labs co-founder Do Kwon, whose algorithmic stablecoin fraud triggered a $40 billion market collapse that prosecutors say contributed to broader crypto contagion including FTX's failure. The post Do Kwon Sentencing: US Wants 12 Years for Terra’s $40 Billion Crash appeared first on Cryptonews.