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Terrausrt’s collapse dragged $ 40,000 million and thousands of investors. Its creator has just confessed deception

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The South Korean who promised a financial revolution has ended up confessing a fraud of 40,000 million dollars. Do kwon, Terrausd and Luna creator, He declared himself guilty on August 12 in A Federal Court of New York for two positions: conspiracy to commit fraud of raw materials, values and electronic, and electronic fraud. The case exploded in 2022 with the collapse of its cryptocurrenciessold as stable. “What I did was wrong,” He admitted in Sala. As happened with Sam Bankman-Fried and FTX, the market digests the bill of an era of excesses. In his statement, Do Kwon acknowledged having cheated investors by not revealing the role of a trading firm in Terrausd’s recovery. It was part of an agreement with the Prosecutor’s Office of the Southern District of New York that plans to request a maximum penalty of 12 years if it assumes its responsibility. Reuters remembers that Kwon was extradited from Montenegro at the end of 2024 and faced nine positions, including values fraud, electronic fraud and conspiracy to whiten capitals. The admission came almost three years after the collapse of the project. H2: How the ‘PEG’ was manufactured and how it collapsed Unlike other stablcoins backed by real assets, Terrausd was based on an algorithm that interacts with Luna, its sister cryptocurrency. The system allowed to create or destroy tokens from one and the other to maintain parity with the dollar. When Terrausd fell from 1 dollarthey could be changed to the moon, which reduced the offer and, in theory, stabilized its value. All this happened within the call Terra protocolwhich executed these operations automatically. The model depended on the balance between supply, demand and market expectations. The first alarm signal came in May 2021, when Terrausd fell below the dollar. According to prosecutors, Do Kwon said that the system had worked as planned: the algorithm had automatically restored parity. But, as he has recognized now, that version omitted a key detail. Financial Times explains thatActually, Kwon turned to a specialized trading firm that bought millions in Terrausd to hold its price. It was a deliberate and hidden operation that, according to the accusation, allowed to maintain the illusion that the system was solid. A year after the first scare, the system did not endure. In May 2022, Terrausd lost parity again, this time irreversibly. The algorithmic mechanism collapsed: Moon’s mass creation, aimed at containing the fall, caused a spiral that The price of both tokens sank. The collapse devastated with about 40,000 million dollars in market value and affected thousands of retail and institutional investors. The loss of confidence was immediate. What was presented as a robust stablecoin became a symbol of the opposite. The civil aspect of the case was resolved in April 2024, When a federal jury declared To Do Kwon and Terraft Labs responsible for fraud in a lawsuit filed by the SEC. The civil order imposed a sanction of 80 million dollars and permanent disqualification and interdiction measures, including the prohibition of making transactions with cryptoactive. In addition, Terraft agreed to pay 4,550 million in civil resolution. The company had already accepted the bankruptcy process, which conditions payments and leaves part of the compensation. Kwon could spend up to 25 years in prisonbut if it complies with the prosecution, the effective sentence would be significantly lower. The agreement contemplates A maximum request of 12 yearsas long as you collaborate and recognize your guilt. Federal Judge Paul A. Engelmayer will issue a judgment on December 11, 2025. Reuters adds that The Prosecutor’s Office will not oppose Kwon requesting a transfer to another country after serving 50% of his conviction. In parallel, the authorities of South Korea maintain open charges that could be activated once their process ends in the United States. Thousands of people, from small savers to institutional funds, were trapped in the fall of Terrausd and Luna. Since then, Terraft Labs accepted the bankruptcy procedure in the United States, under chapter 11, and advances in the liquidation plan. According to Reutersthe estimate of payments to those affected ranges between 184.5 and 442.2 million dollars, and the exact recoverable amount remains in review. As they are highly volatile assets, the current value is much lower than that they had in 2022. Refunds, if they arrive, aim to be partial and late. Images | FAQX ™ We Mining it. (CC by 3.0) | Art Rachen | Joshua May In Xataka | The US believes that it has control of cryptocurrencies because it is the one that is the most mine. Actually China controls the hardware you are using

In 2011 a group of investors bought 80,000 bitcoins. They have been sold by 17,000,000% more expensive

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“Hodl“It is the preferred word of cryptocyerents. It is not an acronym, but a kind of meme or internal joke that is simply a variation of the English verb” hold “(maintain, endure). That term contains a good part of the philosophy of these users, which believe that cryptocurrencies They are a long -term bet that it is necessary to maintain for years to obtain the maximum benefit. There are people who are demonstrating that the thing works. 17,000,000% benefit. Last week, A “whale” (Whatle) Bitcoin sold 80,000 bitcoin for 9,500 million dollars. A user in X (formerly Twitter) detected that mass transaction and the Implicit traceability of the block chain De Bitcoin allowed to know that these bitcoins were acquired (or probably undermined) in 2011 and at that time they had a value of $ 54,000. That means that in these 14 years the benefit of those who sold them has been simply amazing: 17,000,000%. But it is not the only one. Another early cryptocrevent Roger see– It also recently sold another 80,000 BTC. Acquired them in 2014 for $ 210,000, and at the beginning of the month the transaction was detected according to which he had sold them for 8,600 million dollars. Your benefit: 4,000,000%. Multimillionaire whales. There have been additional movements that are also very striking although comparatively are in the shadow of the previous two. At the beginning of July two bitcoin portfolios that had been inactive for 14 years transferred 10,000 BTC each to other different wallets. In 2011, those 10,000 BT had cost $ 16,000, and now their joint value would be around 1,000 million dollars. Bitcoin at maximum. These transactions have occurred Just with Bitcoin achieving historical values. On July 14 the cryptocurrency reached $ 123,000, although since then there has been a small correction and the current value is around $ 118,000. Hodl and strong will. Some users joked by saying that this seller will end up regretting when (or rather “yes”) Bitcoin reaches a value of one million dollars, but the truth is that those who have sold are a spectacular example of that Hodl philosophy. Keep your bitcoins all these years has had to be an exercise of extraordinary patience, especially when at this time There have been numerous increases (and descents) important that surely caused great temptations to sell then. They resisted, and now they have seen the reward. Exceptional demand. As they point out In CointegraphBitcoin’s demand is so spectacular that for example the sale of the 80,000 BTC (0.4% of the amount current today) was “completely absorbed by the market” almost immediately. Movements of this magnitude were supposed to affect the price of Bitcoin, but they did not barely. The immediately posterior impact was sensitive (3.5% value drop) but then the side effects of that sale They have been apparently nil. There are analysts who They point that what has happened suggests that BTC will continue to rise soon. Image | KANCHANARA | Erling Løken Andersen In Xataka | Bitcoin reaches a historical maximum exceeding $ 118,000. A bullish rally driven by the hug of institutions

Elon Musk asked for 80 hours per week to his workers. Tesla investors reproach him not to do 40

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Around Elon Musk the idea of incombustible worker Able to work more than 100 hours a week and even sleep In his office as TeslaTo save the bankruptcy. Proud of that image, the millionaire did not hesitate to demand the same to its employees. A group of Tesla investors has sent a surprising request to the Board of Directors of the company: that Musk dedicate at least 40 hours a week to direct the company. This application comes in a Critical moment for Teslawith the company crossing one of its worst crises, according to its own shareholders and with the figure of Musk more questioned than ever. Musk, focus. The debate on Musk’s commitment to Tesla has intensified after recent passage through politics. The signatory investors, among whom is the American Federation of Teachers, which has 7.9 million shares of Tesla, consider that its CEO has been too dispersed, and now require concrete measures to guarantee good governance and the Tesla stability. In her letter addressed to Robyn Denholm, president of the Tesla Board of Directors, the shareholders indicated that “the external activities of Mr. Musk seem to have diverted their time and attention from the active management of Tesla’s operations, as would be expected of any other executive director of a company that is quoted in the stock market.” Musk itself confessed I could barely dedicate one day To direct your companies. 40 hours a week and three -day week. The investor letter sent to the Tesla Board of Directors, requests that any New remuneration plan For Musk, include the obligation to dedicate at least 40 hours per week to the company’s management. Investors even suggest that Musk could group these hours in three days, leaving the other two to address their other business or political activities. “We just want to make sure that you can devote enough time to supervise and, in the case of executives, properly manage the company,” explained PATEL TABLE, EXECUTIVE DIRECTOR OF SOC INVESTMENT GROUP (one of the signatory investors) to Fortune. A plan to replace CEO. Also, shareholders demand the elaboration of a clear succession plan for the CEO position. In this sense, investors do not propose the replacement of Musk as CEO as Yes they made their employees. Its demand is to identify “emergency” successors that can assume the leadership of Tesla in case Musk is not available, with the objective of “incorporating a new person with the right skills to execute Tesla’s business plans.” Some plans that, on the other hand, the Board of Directors must make public with a strategic schedule between 2 and 5 years. In this way, Tesla would have a succession protocol preventing the company from being “delayed” before an unforeseen event. Limitations for managers. In addition to asking for greater involvement from their CEO, investors also ask to limit the responsibilities of the members of the Tesla Board of Directors In other external companies. With this measure they intend to restrict simultaneous positions of managers outside Tesla to avoid conflicts of interest and ensure that the management is fully Focused on the company. “For many years, the amount of time that CEO Musk has dedicated to the management of Tesla has been limited by its multiple private companies and other external activities,” says the letter. Therefore, they ask that the company’s maximum manager can only hold a managerial position outside of Tesla. A BOARD FIELT TO TESLA. Investor requests do not focus only on the management of Musk, they also extend their criticisms to other members of their board of directors. They insist on the need to incorporate at least a “truly independent” vowel into the Board of Directors. This person should not have links with other council members or Elon Musk to avoid nepotism and conflicts of interest personal among the members of the Board. This request arises after the appointment of Jack Hartung, former executive of Chipotle, as a member of the Tesla Board of Directors. Investors They were worried For the professional connection that Hartung and Kimbal Musk, brother of Elon Musk, have cultivated for years. This petition seeks to eliminate servility when negotiating the salary remuneration of the Board of Directors so that the interests of the shareholders and Tesla over the personal ambitions of its members prevail. An example was the Salary Bonus Negotiation granted to Musk in 2018, by a board formed by friends, historical collaborators of Musk and even his own brother. In Xataka | A government “Extremely Hardcore”: Elon Musk is applying to the US the same recipe that has applied to all its companies Image | Unspash (Mark Chan), Flickr (Gage Skidmore)

Taiwan investors are preparing for hypothetical invasion for China. And they don’t know where to hide

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Donald Trump’s return to the White House has marked a turning point in the relationship held by the US and China. The commercial and technological war between these two powers It comes from afarbut The aggressive policy of tariffs that has deployed, although even in a little consistent way, the US administration has fueled the loop. The tension between countries led by Xi Jinping and Donald Trump is maximum, and Some experts believe That at the current situation the probability that China decides to invade Taiwan is higher than ever. In the 50s of the last century China was a very different country from the current one. He Chinese Communist Party Led by Mao Zedong he had defeated the nationalists who made up the Kuomintang after almost three decades of armed conflict. Imperial power He had disappeared and the country had embarked on very deep structural changes that culminated in the birth of the People’s Republic of China in 1949. The members of the Kuomintang retired to Taiwan that same year, and since then the shadow of the invasion looms over this island. Foreign investors in Taiwan recognize that they do not have a plan B “If an aggression against Taiwan occurs the investment decision becomes binary: either we stay exposed and absorb extreme volatility, or we quickly leave to preserve capital.” These words Steve Lawrence has pronounced themInvestment Director of the Swiss company Balfour Capital Group. From his statement it follows with absolute clarity that foreign investors who have opted for Taiwanese companies do not know how to proceed if there is finally an armed conflict between China and Taiwan. “TSMC is so great that investors’ expectations argue that the US will defend Taiwan. And he will do it strongly” The panorama paints badly. According to Reuters Foreign investors have retired almost 11,000 million dollars from the Taiwan sharing park during this year due to the fear of impact that tariffs on the global economy will have and in the relationship that USA and China support. The government of Joe Biden formalized that if China intervened militarily in Taiwan, the US would respond. However, the administration led by Donald Trump has not yet confirmed whether to defend the island militarily in the hypothetical scenario that China chose to invade it. Anyway, this situation in which instability prevails mainly condition a Taiwanese company: TSMC. This company is The largest semiconductor manufacturer on the planetand, therefore, it is Taiwan’s authentic jewel. In fact, he greatly supports his economy. This company quotes both in the Taipéi stock market and in the New York and the stock market brought the stock market alone at the beginning of this year. “TSMC is so great that the expectations of investors argue that the US will defend Taiwan. And it will do it strongly,” has declared Mikesh DaveInvestment Director of Araval Asset Management, a global arbitration background based in Singapore. Elbridge Colby’s position, one of Donald Trump’s trusted advisors, is aligned with this strategy. This tweet Posted by him In May 2023, it clearly reflects what the policy that defends with the purpose of deterring the Xi Jinping government: “We would be crazy if we allowed us TSMC falls intact to China” According to Gina Raimondothe former Secretary of Commerce, “USA buys 92% of her avant -garde chips from TSMC in Taiwan.” Colby’s tweet that I have mentioned in the previous paragraph suggests that the US should do everything in his hand to prevent China from appropriating the plants that TSMC has in Taiwan. However, during the last two years Colby has not been satisfied with insinuating this idea; He has publicly declared That if China invades Taiwan what the US should do is destroy the TSMC factories and not allow this initiative to fall on the Taiwanese government. Image | TSMC More information | Reuters In Xataka | The US confesses its worst nightmare: if China invades taiwan and controls TSMC the US economy will go to pique

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