ChainCatcher news, Coinbase's Vice President of Legal, Ryan VanGrack, pointed out that over 50% of the SEC's record total fines in 2024 come from the $4.4 billion case against Terraform, but this fine may be difficult to recover. VanGrack believes that an excessive focus on enforcement data may create wrong incentives and suggests focusing on the amount returned to harmed investors as a metric.The Wall Street Journal previously reported that the SEC has not collected fines amounting to as much as $10 billion, including the $62 million fine imposed on Paul Bilzerian 31 years ago for securities fraud (which has grown to $180 million with interest), highlighting the SEC's limitations in enforcement recovery.

ChainCatcher news, according to Decrypt, the U.S. Securities and Exchange Commission (SEC) received $8.2 billion in fines for the fiscal year 2024, setting a record high in its history, with more than half ($4.5 billion) coming from the SEC's fines against Terraform Labs and its founder Do Kwon. Without this settlement, the SEC's finances would have reached their lowest level since 2013, at $3.72 billion.

ChainCatcher news, according to market news, Terra blockchain developer Terraform Labs is in talks with a third party to take over part of its operations.

ChainCatcher news, the official Terra X account announced that Terraform Labs continues to discuss with third parties the takeover of the operation of some of our products and services. However, if the negotiations are unsuccessful, these products will be shut down on October 30, 2024. The products and services include:Products: 1. Enterprise Protocol; 2. Warp Protocol; 3. Statio; 4. Alliance Hub.Services: 1. Finder block explorer; 2. Foundation; 3. IBC relayer; 4. Mantlemint, FCD, and API services.

ChainCatcher news, according to Reuters, Terraform Labs received approval from a U.S. bankruptcy court on Thursday to begin liquidation. U.S. Bankruptcy Judge Brendan Shannon approved Terraform's bankruptcy plan during a hearing in Wilmington, Delaware, stating it was a "popular alternative" to continue litigation for investor losses. Terraform estimates that as part of the bankruptcy liquidation, it will be able to pay between $184.5 million and $442.2 million to cryptocurrency investors and other stakeholders.Previous news, according to the official announcement from Terra, the confirmation hearing for the Chapter 11 bankruptcy reorganization plan of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is scheduled for September 19, 2024, at 10 AM Eastern Time (10 PM Beijing Time).

ChainCatcher news, the AO network infrastructure Autonomous Finance has launched the AO ecosystem tool AOForm.AOForm deploys and upgrades multi-process systems in the AO ecosystem, such as Terraform. AOForm uses a single YAML configuration to simplify deployment, manage process states, and efficiently upgrade components.According to RootData, Autonomous Finance focuses on researching and developing AI financial applications based on AO (super-parallel computers). It leverages AO's decentralized computing environment to integrate on-chain artificial intelligence and generate new data-driven financial primitives, pushing the boundaries of what is possible in financial applications and introducing global market intelligence on-chain.

ChainCatcher news, according to the official announcement from Terra, the confirmation hearing for the Chapter 11 bankruptcy reorganization plan of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is scheduled to be held on September 19, 2024, at 10 AM Eastern Time (10 PM Beijing Time).

ChainCatcher news, according to Bloomberg, the liquidators of the bankrupt crypto hedge fund Three Arrows Capital are seeking at least $1.3 billion in compensation from TerraForm Labs to cover the losses the fund suffered after the collapse of the TerraUSD and Luna tokens in 2022. The liquidators stated in court documents that before the collapse of these tokens, TerraForm had lured Three Arrows into purchasing Luna and TerraUSD by manipulating the market and artificially inflating the prices of these assets. The collapse of the tokens not only wiped out Three Arrows' investments in these tokens but also caused significant losses in other investments.The liquidators indicated that Three Arrows Capital purchased $190 million worth of Luna in January 2022. A few months later, a massive sell-off of TerraUSD led to a significant drop in the value of Luna. Court documents show that by the end of April 2022, Three Arrows held approximately $462 million worth of Luna, but by May 14, the value of its holdings plummeted to just over $2,700. Meanwhile, the net worth of Three Arrows Capital's other digital assets shrank by about $858 million.

ChainCatcher news, according to The Block, the U.S. Securities and Exchange Commission has released an information page specifically for investors affected by Terraform Labs.The SEC stated that since the parties reached a settlement agreement last month, there have been inquiries from investors about how compensation will be handled. The SEC claims on its webpage that it will not receive any compensation until investors and creditors receive full compensation from the corresponding bankruptcy case. The Chapter 11 plan confirmation hearing and start date are expected to take place in the fall.It is reported that in June of this year, Terraform Labs reached a settlement with the SEC, agreeing to pay a fine of $4.47 billion. Terraform will be required to forfeit $3.58 billion in illegal proceeds and pay a civil penalty of $420 million, while its co-founder Do Kwon will be banned from serving as an executive or director of a public company. Do Kwon must also pay $204 million in compensation to harmed investors.

ChainCatcher news, according to the official announcement from Terra, in the Chapter 11 bankruptcy cases of Terra Form Labs Pte Ltd (TFL) and Terra Form Labs Limited (TLL), the preliminary deadline for crypto loss claims is 5 PM Eastern Time on August 21, 2024 (5 AM Beijing Time on August 22).If claims against TFL arise before January 21, 2024, or claims against TLL arise before July 1, 2024, please submit your claims before this deadline. This deadline is only for voting on the Chapter 11 plan.

ChainCatcher message, Terra posted on X that the general deadline for filing claims in the Chapter 11 bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) is set for August 9, 2024, at 5 PM (Eastern Time).If users have any claims against TFL that arose before January 21, 2024, or July 1, 2024, they must be submitted before the general deadline.

ChainCatcher news, Terraform Labs announced that it is actively selling its portfolio tracking platform Pulsar Finance, cryptocurrency wallet platform Station, no-code DAO management platform Enterprise, and its smart contract automation protocol Warp.Terraform Labs stated that this sale is to "maximize value for creditors and other stakeholders," and is also part of its "broader gradual wind-down of operations in accordance with the settlement terms reached with the U.S. Securities and Exchange Commission."

ChainCatcher news, according to documents disclosed by insider @RippleXrpie, the U.S. Securities and Exchange Commission (SEC) has responded to Ripple's request to reduce the $2 billion fine.The SEC stated that Ripple compared the amount of the Terraform fine to Ripple's "total sales," arguing that the court should impose a fine at the same rate (1.27%), which would be a cap of $10 million. However, the SEC believes this rate should be applied to the $876.3 million gross profit that the SEC is requesting the court to refund, resulting in a fine figure ($102.6 million) that is much higher than the $10 million cap insisted upon by Ripple. The SEC argues that such a low fine amount ($10 million) does not fulfill the purpose of civil penalty regulations.

ChainCatcher news, according to The Block, Ripple Labs' lawyers are trying to leverage the recent fines imposed by the SEC on Terraform Labs in an effort to secure a lower penalty in their case with the SEC.Ripple has been engaged in a lengthy legal battle with the SEC for the past few years, and on Thursday, in a "Supplemental Authority Notice," stated that the proposed financial penalty by the regulator is unreasonable. The company compared the SEC's proposed $2 billion fine for its sale of XRP to institutional investors with the fine imposed on Terraform Labs.Ripple believes that its fine should be closer to $10 million. On Wednesday, Terraform agreed to pay a $4.47 billion fine, and later on Thursday, a judge approved the settlement agreement. Ripple's lawyers stated, "The civil penalty sought by the SEC in the Terraform case indicates the unreasonableness of the civil penalty sought in this case.""As explained in Ripple's opposition, the range of civil penalties agreed upon by the SEC in similar (or even more severe) cases has been between 0.6% to 1.8% of the defendant's total revenue. Terraform fits this pattern."

ChainCatcher news, according to Fortune magazine, Bloomberg's previous report that Terraform Labs will pay $4.47 billion to the SEC is "shoddy," as the SEC may ultimately only receive a small portion of the fines, or may not receive the full amount at all.It is reported that Terraform Labs has gone bankrupt, with almost no money left, and it is currently unclear whether Do Kwon still has the $204 million judgment amount he owes.