SEC Rules Terraform Labs and Do Kwon Liable for Fraud

A jury has found Terraform Labs and its co-founder, Do Kwon, liable for fraud in a civil case brought by the U.S. Securities and Exchange Commission (SEC). The SEC's complaint alleged that Terraform and Kwon misled investors about the stability and value of TerraUSD, Luna, and Wrapped Luna (wLUNA). The jury found that Terraform and Kwon acted "recklessly" in making false or misleading statements about the offering and sale of these assets.

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

In a landmark verdict, a jury has held Terraform Labs and its co-founder Do Kwon responsible for defrauding investors in the company's civil case with the United States Securities and Exchange Commission (SEC). The SEC trial commenced on March 25 in the absence of Kwon, who remains in Montenegro while courts determine whether to grant his extradition. After deliberating, the jurors found Kwon and Terraform liable for six counts of fraud. The jury also determined that the platform acted "recklessly" by making false or misleading statements about the offering or sale of TerraUSD, Luna, and wLUNA.

Trader Turns $13K into $2M in Crypto Memecoin Frenzy

Amidst the ongoing surge in memecoin popularity, a crypto trader has managed to turn a mere $13,000 into over $2 million within just an hour. The remarkable gain of 15,700% was achieved on April 3 through an investment in the newly minted Donotfomoew (MOEW) memecoin on the Base blockchain. Created earlier in the day by Bitget Wallet, the cat-themed MOEW token experienced a dramatic spike in value shortly after its debut on decentralized exchanges (DEXs). It currently boasts a market capitalization of approximately $31 million, with over 8,000 addresses receiving MOEW tokens in the ongoing airdrop, which requires users to hold sufficient BWB points.

Bitcoin Flash Crash Leads to $165M in Crypto Liquidations

A sudden 5% decline in the price of Bitcoin (BTC) on April 2 resulted in a swift loss of over $165 million for traders with leveraged exposure to Bitcoin and other cryptocurrencies. According to TradingView data, Bitcoin plummeted from $69,450 to as low as $65,970 in less than half an hour. Data from Coinglass reveals that Bitcoin's sharp drop triggered the liquidation of more than $165 million in leveraged positions, with Bitcoin longs accounting for $50 million and Ether (ETH) longs accounting for over $40 million of that figure. Dogecoin and Solana's SOL also experienced substantial liquidations of long positions, with $6 million and $4 million liquidated, respectively.

Argentina Implements Crypto Registration Requirements

Argentina's government has taken steps towards regulating cryptocurrency exchanges operating within the country. In an announcement on March 25, Argentina's Comisión Nacional de Valores declared that digital asset service providers will now be required to comply with the recommendations set forth by the Financial Action Task Force (FATF). The implementation of FATF requirements has raised concerns about the future of digital assets in Argentina. Notably, users of the Bitcoin payment app Strike have reported that the app is no longer able to facilitate transfers of fiat currency to bank accounts.

BlackRock Updates Bitcoin ETF with Wall Street Additions

Global asset manager BlackRock has updated its Bitcoin exchange-traded fund (ETF) prospectus on April 5, adding five major Wall Street firms as authorized participants. The newly added participants, as per the document filed with the SEC, include ABN AMRO Clearing, Citadel Securities, Citigroup World Markets, Goldman Sachs, and UBS Securities. Notable previously approved participants in the ETF include JPMorgan Securities, Jane Avenue Capital, Macquarie Capital, and Virtu Americas.

Market Winners and Losers

At the end of the week, Bitcoin (BTC) is trading at $67,570, Ether (ETH) at $3,323, and XRP at $0.58. The total market capitalization stands at $2.53 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, the top three altcoin gainers of the week are Core (CORE) with a 112.81% increase, Ethena (ENA) with a 42.57% increase, and Pendle (PENDLE) with a 30.34% increase.

In contrast, the top three altcoin losers of the week are Wormhole (W) with a -32.66% decrease, Conflux (CFX) with a -25.42% decrease, and Akash Network (AKT) with a -22.19% decrease.

Memorable Quotations

"I merely dislike spending lengthy durations serving to individuals who willingly select to gamble on vaporware meme cash vs precise victims." - ZachXBT, pseudonymous on-chain sleuth

"I by no means thought that what I used to be doing was unlawful. I’m haunted, each day, by what was misplaced. I by no means meant to harm anybody or take anybody’s cash." - Sam Bankman-Fried, former CEO of FTX

"We’re not believers in crypto." - Sharmin Mossavar-Rahmani, chief investment officer at Goldman Sachs

"I believe this [Bitcoin] is an insurance coverage coverage in opposition to rogue regimes or in opposition to simply horrible fiscal and financial insurance policies." - Cathie Wood, CEO of ARK Invest

"Folks have instructed me that they desperately need to have substantive discussions with the [SEC] employees however fear that the inevitable effects of such a gathering could be a name from enforcement." - Hester Peirce, commissioner on the U.S. Securities and Exchange Commission

"DeFi stands out as the one sector with the potential to leverage this narrative, offering a sustainable ecosystem for Bitcoin’s evolving use circumstances." - Nash Lee, co-founder of MerlinSwap

Prediction of the Week

Bitcoin's 2028 Halving Price Target at $435K, Historical Data Suggests

Bitcoin's price has surged by approximately 650% since the last halving event in 2020. If history repeats itself, Bitcoin could potentially reach the $435,000 price level before the 2028 halving.

The 2024 Bitcoin halving is expected to occur in less than three weeks. If historical chart patterns are to repeat, Bitcoin's current $66,000 value could rise to $434,280 per coin by the 2028 halving, assuming it performs similarly to the current cycle.

However, Bitcoin's average price rallies have diminished by 45% each cycle, with the current cycle being at 658%. If this trend continues, Bitcoin could experience a 360% rally in the next cycle, resulting in an approximate $303,600 BTC value at the 2028 halving.

FUD of the Week

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

The Aave decentralized autonomous organization (AaveDAO) continued discussions on April 5 regarding potential limits to Dai (DAI) collateral, as risk management consultants Chaos Labs proposed a new plan to reduce Dai loan-to-value ratios by 12%. Previously, Marc Zeller, the founder of the Aave Chan initiative, suggested a 75% reduction. MakerDAO faced criticism on AaveDAO boards on April 2 after minting 600 million DAI and depositing it in a vault with the decentralized lending protocol Morpho. An April 1 proposal on the MakerDAO boards attempted to increase the vault's minting limit to 1 billion DAI, potentially leading to a significant increase in the supply of the stablecoin.

OneCoin's Legal Boss Gets 4 Years Jail for $4B Crypto Scam

The former head of legal and compliance for the multi-billion dollar OneCoin fraud scheme has been sentenced to four years in prison after admitting to aiding in the laundering of millions of dollars. In addition to her prison sentence, Irina Dilkinska was ordered to serve one month of supervised release and forfeit $111 million as restitution. United States District Judge Edgardo Ramos denied Dilkinska's request to avoid jail time and return home to care for her young children in Bulgaria.

Philippines SEC Accuses eToro of Offering Unregistered Securities

The Securities and Exchange Commission of the Philippines has issued an advisory against the online trading platform eToro, stating that it is not authorized to sell or offer securities in the country. The advisory warns that individuals acting as salespeople, promoters, influencers, endorsers, or brokers for eToro in the Philippines could face penalties of up to $88,300 (5 million Philippine pesos) in fines or 21 years of imprisonment for violating securities laws.

Top Journal Articles of the Week

Ethereum's ERC-20 Design Flaws Are a Crypto Scammer's Best Friend

Initially released in 2015, ERC-20 tokens are rife with security vulnerabilities, with little prospect of a timely fix.

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

AI didn't kill the metaverse, it will build it, says Alien Worlds. Bittensor counters Eric Wall, medical/beer breakthroughs: AI Eye.

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

The head of Ava Labs' gaming division deems their marketing stunt successful at the Game Developers Conference. Additionally, the Bitcoin Miner clicker game offers minimal rewards.

Editorial Staff

Cointelegraph Journal writers and reporters contributed to this article