Protests erupt in Havana as Cuba struggles to restore electricity

-
By Dave Sherwood and Ayose Naranjo Reuters Scattered protests broke out across Havana on Tuesday evening, with residents banging pots, honking horns and shouting “turn on the lights” as millions ‌of Cubans remained without power amid a six-month-long U.S. fuel blockade. Cuba experienced a nationwide outage on ‌Monday — its third this year — but while authorities said most of the country had been reconnected to the island’s grid by late ​Tuesday, many remained in the dark and without electricity as the island doesn’t have enough fuel. The country’s grid operator UNE said it had reconnected the grid from Pinar del Rio, in far western Cuba, to Holguin in the east. Santiago de Cuba, the island’s second-largest city, remained disconnected and without power, authorities said. The U.S. in January ‌cut off Cuba’s fuel supply, then ⁠imposed fresh sanctions that have prompted an exodus of foreign businesses and a near-complete collapse o...
Post a Comment

Terraform Labs In The Hot Seat: Trial Begins As Do Kwon’s Final Extradition Decision Looms

-

Terraform Labs is set to face a high-stakes trial on Monday, grappling with civil fraud allegations linked to the collapse of its TerraUSD stablecoin in 2022. Meanwhile, Terra co-founder Do Kwon remains in Montenegro awaiting the decision on whether he will be extradited to the United States or South Korea to face criminal charges. 

Terraform Labs Faces Trial Over $40 Billion TerraUSD Collapse

The civil case against Terraform Labs centers on fraud allegations brought forth by the US Securities and Exchange Commission (SEC), stemming from the collapse of TerraUSD, which resulted in the loss of approximately $40 billion in investor assets. 

According to a Bloomberg report, the trial will see a Manhattan jury deliberating the fraud claims, examining the SEC’s allegations regarding Terraform Labs’ “deceitful practices.” 

While the trial unfolds, Do Kwon finds himself caught in the Montenegro justice system, awaiting the crucial decision on his extradition. Having faced criminal charges in both the US and South Korea, Kwon’s release from a Montenegro prison on Saturday was accompanied by the country’s Supreme Court reviewing earlier court rulings regarding his potential extradition to South Korea. 

The circumstances surrounding Kwon’s extradition challenge SEC enforcers, as civil suits typically take a back seat to criminal proceedings. Until Kwon is in the US, a criminal trial cannot occur.

In light of these developments, the SEC is seeking a court order to enjoin Terraform Labs and Do Kwon from future violations of US securities laws. In addition, the SEC is seeking civil penalties and disgorgement of ill-gotten gains. 

The regulatory authority claims that Terraform Labs defrauded investors by falsely asserting that the popular Korean payment app, Chai, utilized Terraform’s blockchain technology for processing and settling cryptocurrency transactions. 

The SEC further alleges that investors were misled about the stability of TerraUSD, which was purportedly algorithmically “pegged” to the US dollar. Terraform Labs strongly denies these allegations, criticizing the SEC’s characterization of cryptocurrency companies as “lawless.”

Whistleblowers And Key Witnesses Take The Stand

Having filed for Chapter 11 bankruptcy protection in January, Terraform Labs argued it could not pay the penalties sought by federal regulators. Do Kwon, who owns approximately 92% of the company’s equity, faces the daunting task of navigating these legal battles while Terraform Labs’ fate hangs in the balance. 

US District Judge Jed Rakoff, who is presiding over the civil case, ruled in December that Terraform is liable for selling “unregistered securities.” This is in line with the SEC’s hinting that cryptocurrencies other than Bitcoin (BTC) are “securities” under the Howey test, which many pro-crypto advocates and companies believe is an “outdated set of rules and laws.”

However, Terraform maintains that its cryptocurrencies do not fall under the definition of securities, disputes the SEC’s jurisdiction, and intends to appeal the ruling.

During the trial, the jury is expected to hear evidence regarding the involvement of Jump Trading, a Chicago-based trading firm alleged to have entered into a “secretive arrangement” with Terraform Labs to support TerraUSD before its collapse. 

According to Bloomberg, the SEC will allegedly present text messages between Terraform executives discussing the “depeg,” where TerraUSD lost its peg to the US dollar in May 2021. 

Key witnesses include alleged whistleblowers, a Jump Trading executive, and the chief product officer at the Chai payment app, who aim to demonstrate Terraform and Kwon’s intentional deception. It is anticipated that Bill DiSomma, co-founder of Jump Trading, will also testify.

Terraform Labs

Featured image from Shutterstock, chart from TradingView.com 



from Bitcoinist.com https://ift.tt/3Q2kVFJ

Comments

Post a Comment

Popular posts from this blog

Myanmar earthquake death toll rises as fresh tremors further complicate rescue efforts

-
Image
A5.1-magnitude earthquake struck near Mandalay, Myanmar’s second-largest city, on Sunday, according to the U.S. Geological Survey (USGS). The tremor was part of a series of aftershocks following Friday’s devastating 7.7-magnitude earthquake, which resulted in the collapse of numerous buildings and significant infrastructure damage. The death toll has risen to over 1,600, with more than 3,400 individuals reported missing; these numbers are expected to increase as rescue operations continue. Foreign rescue teams and supplies arrived in Myanmar on Sunday to help the impoverished country cope with an earthquake that killed over 1,600 and left many near the epicentre scrambling for help without proper equipment. The 7.7-magnitude quake, one of Myanmar’s strongest in a century, jolted the Southeast Asian nation on Friday, leaving 1,644 people dead, 3,408 injured and 139 missing, the military government said. India, China and Thailand are among Myanmar’s neighbours that have sent relief ...
Read more

Israel says situation on Lebanon border ‘not sustainable’

-
By James Mackenzie Reuters  Israeli officials and media reacted with satisfaction on Monday after a  long-expected missile attack  by the Iranian-backed Hezbollah movement appeared to have been largely thwarted by pre-emptive Israeli strikes in southern Lebanon. Both Hezbollah and Israel seemed content to let Sunday’s attack, in retaliation for the  killing of a senior Hezbollah commander  in Beirut last month, count as settled for the moment. Israeli government spokesperson David Mencer said Hezbollah had suffered a “crushing blow” from the Israeli strikes but that a longer lasting solution was still needed. “The current situation is not sustainable,” he told a briefing, referring to the tens of thousands evacuated from their homes in northern Israel, a situation mirrored on the other side of the border in southern Lebanon. “Israel will do its duty and return its population to our sovereign territory.” Hopes that children might return for the start of the ...
Read more