Terraform Labs, Do Kwon Found Liable for Fraud in SEC Lawsuit

In a significant development, Terraform Labs and co-founder Do Kwon have been found liable for defrauding investors by a United States Securities and Exchange Commission jury. The SEC trial began on March 25 without Kwon's presence, and jurors have determined that Terraform and Kwon are liable on six charges. They have also found that the platform made misleading statements regarding TerraUSD, Luna, and wLUNA offerings and sales. Meanwhile, a trader made a remarkable profit of $2 million within an hour by investing in the novel memecoin MOEW, which has surged in value since its debut.

Terraform Labs and Do Kwon Found Liable for Fraud in SEC Case

In a resounding verdict, a jury has determined that Terraform Labs and its co-founder, Do Kwon, orchestrated a fraudulent scheme that misled investors and caused substantial financial losses. The verdict, the culmination of a civil trial brought by the United States Securities and Exchange Commission (SEC), serves as a major blow to Kwon and Terraform, who are now legally liable for their actions.

The SEC's lawsuit alleged that Terraform and Kwon violated securities laws by making false and misleading statements about their cryptocurrency, TerraUSD (UST), a so-called stablecoin pegged to the value of the US dollar. The lawsuit further alleged that Kwon and Terraform engaged in market manipulation and unregistered securities offerings, resulting in billions of dollars in losses for investors.

Despite the absence of Kwon from the trial, who remains in Montenegro as courts deliberate on his extradition, the jury found him and Terraform liable for six charges. The verdict underscores the SEC's commitment to protecting investors and holding bad actors accountable in the rapidly evolving cryptocurrency market.

Crypto Trader Turns $13K into $2M as Memecoin Frenzy Continues

In a remarkable demonstration of the volatility and potential of cryptocurrencies, a trader invested a mere $13,000 in a novel memecoin called Donotfomoew (MOEW) and turned it into a staggering $2 million within a single hour. The cat-themed MOEW token, created by Bitget Wallet, surged in value shortly after its debut on decentralized exchanges (DEXs), propelling its market capitalization to over $31 million.

This extraordinary gain showcases the allure and risks associated with memecoins, which often experience parabolic price increases driven by social media hype and investor enthusiasm. However, such investments carry significant volatility and should be approached with caution, as they can also lead to substantial losses.

Bitcoin 5% Flash Crash Triggers $165M in Crypto Liquidations

A sudden 5% plunge in the price of Bitcoin (BTC) on April 2 sent shockwaves through the cryptocurrency market, resulting in $165 million in liquidated leveraged positions in less than two hours. The sharp drop, which saw BTC fall from $69,450 to $65,970 in under 30 minutes, sent ripples of fear and uncertainty across the crypto ecosystem.

According to data from Coinglass, more than $50 million in Bitcoin longs and over $40 million in Ether (ETH) longs were liquidated. DogeCoin and Solana's SOL also saw significant liquidations, with roughly $6 million and $4 million wiped out, respectively. This incident highlights the dangers of excessive leverage in the cryptocurrency market and the potential for sudden price swings to cause substantial losses.

Argentine Government Implements Crypto Registration Requirements

In a move to regulate the cryptocurrency industry, the Argentine government has enacted requirements for cryptocurrency exchanges to operate legally within the country. The Comisión Nacional de Valores, Argentina's securities regulator, announced that virtual asset service providers must adhere to the recommendations of the Financial Action Task Force (FATF).

This implementation, intended to combat money laundering and terrorist financing, has raised concerns about the future of digital assets in Argentina. Some users of the Bitcoin payments app Strike have reported that the app no longer allows them to send fiat currency to bank accounts. The Argentine government's actions underscore the increasing global scrutiny of cryptocurrency exchanges and the need for regulatory frameworks to protect investors and maintain financial stability.

BlackRock Updates Bitcoin ETF, Adds Wall Street Heavyweights

Global asset manager BlackRock has amended its Bitcoin exchange-traded fund (ETF) prospectus, adding five major Wall Street firms as authorized participants. The new participants include ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs, and UBS Securities. This expansion demonstrates the growing institutional interest in Bitcoin and the ETF market, providing investors with additional access to the world's largest cryptocurrency.

Market Analysis

At the end of the reporting period, Bitcoin (BTC) was trading at $67,570, Ether (ETH) at $3,323, and XRP at $0.58. The total market capitalization for cryptocurrencies stood at $2.53 trillion. Among the top 100 cryptocurrencies, Core (CORE) led the gainers with a 112.81% increase, followed by Ethena (ENA) at 42.57% and Pendle (PENDLE) at 30.34%. The top losers included Wormhole (W) at a -32.66% decline, Conflux (CFX) at -25.42%, and Akash Network (AKT) at -22.19%.

Winners and Losers

Top 3 Altcoin Gainers:

1. Core (CORE): 112.81%
2. Ethena (ENA): 42.57%
3. Pendle (PENDLE): 30.34%

Top 3 Altcoin Losers:

1. Wormhole (W): -32.66%
2. Conflux (CFX): -25.42%
3. Akash Network (AKT): -22.19%

Prediction of the Week

Bitcoin's 2028 Halving Price Target Projected at $435K

Based on historical data, Bitcoin's price is projected to rally approximately 650% from its current levels by the next halving in 2028, potentially reaching $435,000 per coin. This projection is based on the historical pattern of Bitcoin price surges following halving events, when the block reward for miners is reduced. While the actual price performance may vary, the historical data provides a compelling basis for this prediction.

FUD of the Week

AaveDAO Debates Dai Collateral Limit after $600M Mint with eUSD Backing

The Aave decentralized autonomous organization (AaveDAO) has engaged in ongoing discussions regarding limits on the use of Dai (DAI) as collateral on the Aave lending platform. Risk management consultants Chaos Labs proposed reducing the Dai loan-to-value ratios by 12%, while others, such as Aave Chan initiative founder Marc Zeller, have argued for a 75% reduction.

These discussions stem from concerns raised by MakerDAO, the issuer of DAI, after it minted 600 million DAI and deposited it in a vault with the decentralized lending protocol Morpho. This move raised concerns about the potential for oversupply of DAI and its impact on the Aave platform. The outcome of these discussions remains uncertain, but it highlights the challenges and risks associated with managing collateralized lending in the DeFi ecosystem.

OneCoin's Legal Boss Sentenced to 4 Years Jail for Cryptocurrency Fraud

Irina Dilkinska, the former head of legal and compliance for the OneCoin fraud scheme, has received a four-year prison sentence for her role in laundering millions of dollars for the multibillion-dollar cryptocurrency scam. In addition to the jail term, Dilkinska was ordered to forfeit $111 million in restitution. This sentence serves as a stark reminder of the severe consequences faced by those involved in cryptocurrency-related fraud.

Philippines SEC Accuses eToro of Unregistered Securities Offerings

The Securities and Exchange Commission of the Philippines has issued a warning against the eToro online trading platform, stating that it is not authorized to offer securities in the country. This action highlights the global regulatory scrutiny of cryptocurrency platforms and the need for compliance with local regulations to protect investors.

Top Magazine Pieces of the Week

Ethereum's ERC-20 Design Flaws: A Scammer's Paradise

An in-depth analysis of the Ethereum ERC-20 token standard reveals its numerous security vulnerabilities and the ease with which scammers can exploit them. The article argues that these flaws pose a significant risk to investors and the reputation of the cryptocurrency industry.

AI Will Build the Metaverse, Says Alien Worlds, Eric Wall vs Bittensor: AI Eye

This article explores the potential role of artificial intelligence (AI) in shaping the development of the metaverse. It features perspectives from Alien Worlds, Eric Wall, and Bittensor on the impact of AI on virtual reality and gaming.

'Web3 Gaming Sucks' Says Ava, 2M Bitcoin Miner Players Make 13c: Web3 Gamer

A candid assessment of the current state of Web3 gaming, based on the experiences of Ava Labs and the Bitcoin Miner clicker game. The article highlights the challenges faced by the industry and the need for improvement in gameplay and user experience.