According to the complaint, Jane Street used material nonpublic information related to Terraform’s internal operations to gain an unfair trading advantage in TerraUSD (UST) and Luna markets during a critical period.

Claims of Front-Running and Market Advantage

The lawsuit alleges that Jane Street obtained sensitive, price-moving information from individuals connected to Terraform Labs before it became public. Armed with this knowledge, the firm is accused of engaging in “front-running” — placing trades ahead of anticipated large market moves to secure profits.

Snyder argues that Jane Street leveraged its market relationships to position itself advantageously during one of the most consequential events in crypto history. On behalf of affected creditors, the wind-down team has stated it intends to pursue all legal remedies available.

Jane Street has firmly denied the allegations, characterizing the lawsuit as opportunistic and without merit. The firm has indicated it will vigorously defend itself against the claims.

The Events That Triggered the Collapse

The chain of events dates back to May 7, 2022, when Terraform Labs quietly withdrew 150 million TerraUSD from the Curve3pool liquidity platform. The lawsuit claims that roughly 10 minutes before any public disclosure, a wallet allegedly linked to Jane Street withdrew 85 million UST from the same pool.

The withdrawals contributed to market instability. The following day, Terraform founder Do Kwon stated that the transaction was intended to move liquidity to a new stablecoin pool. However, confidence in TerraUSD quickly eroded.

By May 9, UST had begun losing its 1:1 dollar peg, and the Luna token rapidly collapsed. Within a week, approximately $40 billion in market value was wiped out, triggering widespread losses and impacting multiple crypto firms exposed to the ecosystem.

Aftermath and Ongoing Legal Scrutiny

Founded in 2018 in Singapore by Do Kwon and Daniel Shin, Terraform Labs was best known for the Terra blockchain, Luna token, and algorithmic stablecoin TerraUSD. The company filed for bankruptcy in January 2024, and a wind-down trust assumed control later that year.

In August, Do Kwon pleaded guilty to two criminal charges and received a 15-year prison sentence.

The lawsuit against Jane Street reopens debate over accountability in the Terra collapse. While the outcome remains uncertain, the case may have broader implications for insider trading enforcement and market conduct standards within the crypto industry.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Insider Trading Allegations Surface in Terra Collapse Lawsuit appeared first on Coin Engineer.

Especially noteworthy are Terra Luna founder Do Kwon’s U.S. trial, China’s new tariff implementation, and the release of FOMC minutes—all of which could significantly impact both traditional and crypto markets.

Inflation metrics such as CPI and PPI may influence expectations around the Fed’s rate path. Additionally, FTX’s creditor distribution and the SEC’s digital asset task force meeting are also likely to be closely watched by investors.

What to Watch This Week & Potential Market Impact

We’ve compiled the most important events to watch this week. These developments in both global economics and the crypto space could bring both opportunities and risks. Here’s a breakdown of the top events:

Tuesday, April 8 – Syscoin’s Nexus Upgrade

• The Syscoin (SYS) network will undergo its “Nexus” upgrade.

• Improved network efficiency may drive increased interest in the $SYS token.

Wednesday, April 9 – Neutron Upgrade & FOMC Minutes

• Neutron (NTRN) will implement the “Mercury” network upgrade.

• A successful upgrade could positively influence $NTRN’s price movement.

• FOMC Meeting Minutes will be released.

• Investors will look for clues about the Fed’s policy stance, potentially triggering market volatility.

Thursday, April 10 – Do Kwon’s Trial, CPI, Jobless Claims, and China Tariffs

• Terra Luna founder Do Kwon will stand trial in the U.S.

• The outcome may have direct implications for LUNA and Terra ecosystem assets.

• U.S. Yearly CPI data will be published. (Forecast: 2.6% | Previous: 2.8%)

• A higher-than-expected inflation print could delay Fed rate cuts, impacting markets broadly.

• U.S. Initial Jobless Claims will also be released. (Forecast: 223K | Previous: 219K)

• Labor market conditions could further influence investor sentiment.

• China to implement 34% additional tariffs on U.S. goods.

• Rising trade tensions may weigh on market risk appetite.

Friday, April 11 – SEC Meeting, PPI, BlackRock Earnings & FTX Distribution

• The SEC will hold its first meeting of the Digital Assets Task Force.

• Regulatory developments could add pressure to the crypto market in the short term.

• U.S. Yearly PPI report to be released. (Forecast: 3.3% | Previous: 3.2%)

• Continued inflationary pressures may affect Fed rate outlook.

• BlackRock will publish its earnings report.

• Results could influence global investor sentiment and broader financial markets.

• FTX to begin distributions for users with balances over $50,000.

• This marks a major milestone in the bankruptcy process and could impact user confidence.

In summary, this week’s mix of economic data, network upgrades, and legal developments could drive significant volatility in crypto markets. Investors should monitor events closely and adjust strategies accordingly.

In the comment section, you can freely share your comments and  opinions about the topic. Additionally, don’ t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.

The post What Will Happen in Crypto and World Markets This Week! appeared first on Coin Engineer.

The court’s decision closed another legal route for Terraform Labs co-founder Kwon, dismissing his appeal due to legal inconsistencies.

Kwon has been at the center of global investigations since the collapse of his crypto empire in 2022. The United States and South Korea accuse him of fraud and other financial crimes related to the $40 billion Terra Luna crash. Both countries have requested his extradition.

The Montenegro court’s ruling means Kwon’s legal fate remains uncertain, as the international extradition case could set a precedent for cross-border accountability in the crypto space.

The Ongoing Legal Battle Since the Terra Luna Collapse

Kwon’s legal battle began after the collapse of his crypto ecosystem, Terra Luna, in May 2022, wiping out approximately $40 billion in market value.

The event triggered investigations into allegations of fraud, market manipulation, and violations of securities laws. Kwon was arrested in Montenegro in March 2023 while attempting to use a fake passport.

Considered one of the most significant events in crypto history, the collapse of the Terra Luna ecosystem shook investor confidence in stablecoins and decentralized finance (DeFi), leading to increased regulatory crackdowns worldwide.

In April, a U.S. court found Terraform Labs and Kwon liable for fraud in a case initiated by the U.S. Securities and Exchange Commission (SEC), accusing them of knowingly misleading investors and recklessly handling customer funds.

Since his arrest, the Montenegrin judiciary has been dealing with the complexities of Kwon’s dual extradition requests, with the decision expected to have a significant impact on the geopolitical dynamics between the U.S. and South Korea.

The Terraform-SEC Lawsuit

In June, Terraform Labs agreed to pay approximately $4.47 billion as part of its settlement with the SEC. This included $3.6 billion in disgorgement fines, a $420 million civil penalty, and about $467 million in pre-judgment interest.

According to the settlement plan, Kwon was fined $110 million in disgorgement, $80 million in civil penalties, and approximately $14.3 million in pre-judgment interest.

Montenegrin Prime Minister’s Involvement with Terraform Labs

Almost a week after Terraform Labs‘ settlement with the SEC, findings from an April court document sparked controversy regarding the involvement of Montenegrin Prime Minister Milojko Spajić with the crypto firm.

According to a report from Montenegrin media outlet Vijesti, Spajić, who took office in October 2023, had invested $75,000 to purchase 750,000 Terra tokens from the firm in April 2018.

Until the SEC disclosed the documents, Spajić had claimed that he had never personally invested in the collapsed crypto project. However, the documents revealed his name on the list as one of the first investors of Terraform Labs, disproving this claim.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post The Montenegro Court Rejected Do Kwon’s Extradition Request appeared first on Coin Engineer.

The post Do Kwon’s Extradition from Montenegro Has Been Postponed Once Again appeared first on Coin Engineer.

On May 31st, Buterin retweeted a post about LUNA. This retweet did not go unnoticed by the community. The post that Buterin retweeted stated, “Most of the Luna hate I see seems to be coming from the eth camp.”

The post in question was shared on January 10, 2022, before the Luna collapse. The post was by crypto influencer @blknoiz06.

While Buterin’s retweet did not have a significant impact on the price, his move was interpreted in a few different ways.

Backpack (BP) Brings Good News to Early Users

One of the notable projects in the crypto ecosystem, Backpack, has officially entered its token

23
Mar

What is Ant.FUN (ANB)?

One of the projects that has recently attracted attention in the crypto market is Ant.FUN

16
Mar

Strategy’s Massive Bitcoin Purchase Moved the Market!

Institutional investment activity continues to attract attention in the cryptocurrency market. One of the companies

16
Mar

Community Interpretations

Some saw it as a sign of Buterin’s support for Luna.

Others saw it as a way for Buterin to distance himself from the Ethereum community.

Still others saw it as a reminder of the risks of investing in cryptocurrencies.

The post Vitalik Buterin Retweets Terra (LUNA) Post, Sparking Community Discussion appeared first on Coin Engineer.

The court’s decision comes after previous reports suggested that Kwon would be extradited to South Korea rather than the United States. However, this decision was suspended by the Montenegrin court in light of recent developments.

The lenient sentence for Kwon has sparked a surge in the prices of related cryptocurrencies. LUNA and LUNC, the two main tokens associated with the Terra ecosystem, have seen increases of 15% and 11%, respectively.

Kwon’s Terra Luna and TerraUSD projects collapsed in May 2022, along with Terra’s algorithmic stablecoin UST, causing billions of dollars in losses for investors.

The fact that Kwon has not been severely punished after causing billions of dollars in losses to investors has drawn criticism from the cryptocurrency community.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Terra Luna Founder Do Kwon Released to House Arrest, LUNA and LUNC Prices Surge appeared first on Coin Engineer.

You can access the AMA content and details here.

First, the Ledgity project representatives, whom we asked to introduce themselves, conveyed the following during the Coin Engineer – Ledgity AMA event:

“I am Pierre-Yves, the founder and CEO of Ledgity. I am joined by our CPO and DeFi Leader, @LilaRest. In total, we are an 8-person team based in France, combining over a decade of experience in TradFi and a deep understanding of how new technologies like blockchain and crypto will revolutionize the finance industry. We are very excited to share Ledgity’s vision with the community.”

Our AMA event as Coin Engineer started with some introductory questions we asked the Ledgity project representative and the questions asked and the answers provided were as follows:

Q1: What is Ledgity? Can you briefly introduce it?

A1: We are excited to present the Ledgity Yield Protocol. It’s a treasury management solution backed by Real World Assets, providing stable, reliable, and scalable yield solutions for stablecoin token holders.

Our vision is to develop a “stable yield for stablecoins” solution backed by RWA. This is perfect timing as the RWA market is booming, and it’s likely to play a significant role in the crypto market in the coming years. Wallets with Tokenized RWAs doubled in just a year. In just 2 months, RWA jumped from the 13th to the 8th position in the largest markets on DeFi Llama. Binance predicts the RWA market will be worth $16 trillion by 2030.

It’s the perfect market timing. The TradFi fixed-income market has been offering the best yield opportunities in the last 15 years. Our legal team has been working hard for over a year to be regulated by the French Financial Market Authority as a Digital Asset Service Provider. With one of the most advanced regulations for crypto assets worldwide, Ledgity Yield Protocol follows a similar approach to Lido for liquid Ethereum staking: users deposit USDC, receive LUSDC, and start earning yields in LUSDC. They can withdraw LUSDC to USDC whenever they want.

LUSDC is backed 1:1 by a diversified bond portfolio.

Q2: What is the current stage of the project?

A2: We successfully launched our Beta on Arbitrum and Linea just 2 weeks ago. Our technical and financial architecture is ready, and it’s time to spread the word and pave the way for a bright future for Ledgity Yield . We are forming partnerships with major projects and launching an intensive marketing campaign.

Soon, we will kickstart our Arbitrum Lockdrop, rewarding early adopters with the first $LDY tokens! Let’s replicate Lido’s success, but this time for stablecoin yield.

Q3: We’ll come back to the Lockdrop campaign shortly, for now, can you explain how the protocol works?

A3: From a regulatory perspective, i) users lend their stablecoins to Ledgity. ii) Ledgity swaps the USDC into fiat currency, secures the capital in a segregated bank account, and iii) invests the capital into a diversified bond portfolio. Also by pooling stablecoin capital together, Ledgity’s yield program allows stablecoin holders to benefit from a stablecoin yield solution with an institutional governance approach.

Funds are invested without a speculative spirit, and the investment rules align with the core objective of providing stable and attractive yields offered in the stablecoin. From a technical perspective, Ledgity’s financial team leverages Off/On ramps with partners like Circle to securely move funds to an off-chain RWA portfolio.

The Ledgity Yield application offers a series of smart contracts that act as a bridge between DeFi and TradFi, securing the flow of funds between users and Off/ramp partners, from reward distributions to deposit and withdrawal operations. When a user deposits USDC into the Ledgity Yield smart contracts, they receive LUSDC as proof of deposit in a 1:1 ratio.

Once a user holds some LUSDC, they start generating a yield on it. There’s no need to stake, lock, or claim anything; the user will see their LUSDC balance growing automatically over time. Shortly, users will be able to use their LUSDC as collateral on lending platforms, as liquidity on DEXs, and even in an auto-leverage vault to enhance their yields!

Q4: I heard that you will be sharing 13% of the 6-month supply through a Lockdrop campaign. I’m excited to get exposure to such an advanced RWA project! Can you provide more information about the campaign?

A4: The campaign will kick off on Arbitrum. So stay tuned, the official date will be announced soon. Additionally, participants of the Lockdrop will be the first to receive $LDY tokens. This is the only way to start receiving $LDY tokens from TGE. Other wallets will have no choice but to buy on the market (= no selling pressure at launch). TGE is expected to be completed by the end of October.

Locking will only be open for 30 days and will distribute approximately 13% of the 6-month $LDY supply. Users can lock any amount of USDC for 3, 6, or 12 months. The longer the lock, the more $LDY a user will receive. Please note that the Lockdrop will be limited to the first 5M USDC, and it’s first-come, first-served, so don’t miss out on the opportunity! Lastly, it’s worth mentioning that Lockdrop participants will earn $LDY only for 6 months, with the majority of other emissions occurring over 48 months!

Get notified when the locking process begins by joining our Discord: https://discord.gg/ledgityyield

Q5: Great, but can you provide us with more information about the $LDY Token?

A5: Great question. $LDY is the utility and governance token of the Ledgity ecosystem. $LDY resides at the heart of the ecosystem and offers many benefits and advantages to $LDY token holders, such as unlocking the leverage vault, 0% withdrawal fees, and extra yield on stablecoins through features like L-Boost.

It’s important to note that this is a community-centric token and will primarily be distributed as an incentive to our community members. 5% of protocol revenues accumulate in stablecoins to support the token price by buying back $LDY tokens during bearish periods. Inflation increases, decreasing over the years until reaching the maximum supply (4 years).

After the questions posed by the Coin Engineer within the scope of the project were answered by the Ledgity representative, questions from 10 Twitter and Telegram users were selected during the Coin Engineer – Ledgity AMA event and were subsequently addressed by the Ledgity representative in the Coin Engineer – Ledgity AMA.

TWITTER QUESTIONS

Q1: You allow users to lend and borrow cryptocurrencies at fixed rates. How does this compare to traditional finance? (@ErmanlarSelim)

A1: Hey @ErmanlarSelim, thanks for your question. We don’t allow users to borrow. We offer a yield protocol on a stablecoin with an attractive yield backed by RWA to benefit from its stability. So in a way, we’re multiplying what you have in tradfi when you invest cash in an investment solution like a bond portfolio, but for the web3 industry. The stablecoin market is currently massive, with around 120 billion dollars. It’s somewhat similar to what Lido Finance does but for stablecoins.

Q2: The founders of Ledgity have experience in the financial sector and believe in the future of cryptocurrencies. What forms the basis of this belief? (@Atakan_Yaavuz)

A2: The best use case for blockchain technology is in the finance industry. This is because the finance industry deals with ledger management, and blockchain technology disruptively innovates ledger management. When you understand how the banking system works, you can easily identify the benefits of using blockchain technology.

So, crypto and blockchain will definitively reshape our financial infrastructure, bringing greater efficiency, faster settlement times, and reduced intermediary costs. We are at the forefront of this innovation, and the Ledgity Yield Protocol is a great example.

The best way to see this in action is by joining our Discord: https://discord.gg/ledgityyield

Q3: Your platform will be fully usable by the end of 2023. What does this mean for users? What can we expect? (@atar_abdullahh)

A3: Dear community, there’s a lot in store for you. First and foremost, the upcoming Arbitrum Lockdrop campaign will distribute the first $LDY tokens to our earliest community members. After that, we’re preparing leverage vaults and L-Boosts that will allow you to further boost stablecoin yields, integrated with other protocol opportunities. But most importantly, our incentive campaigns!

We aim to distribute 65% of the $LDY supply to our community over the next 4 years! This will be in the form of enhanced vaults, $LDY staking, incentives, and more. The best part is that these rewards will be distributed linearly over 4 years, so the earlier you join, the less you’ll share these rewards with other users.

Q4: As a team, do you analyze your competitors and chart your course accordingly? How much contribution will locking USDC make? (@HknylmzHakann)

A4: We continually conduct competitor analyses. It’s an ongoing process to provide our community with a unique value proposition and to continue being one of the most competitive protocols in our space. By locking your USDC, also you’ll receive a portion of the first $LDY tokens. And after the lock period, you get your USDC back 100%! Lock-drop participants will be the first to receive $LDY tokens. This is the only way to start receiving $LDY tokens from TGE. Other wallets will have no choice but to buy on the market (= no selling pressure at launch). TGE is expected to be completed by the end of October.

Q5: An exciting project for the future of cryptocurrencies. How do you envision this project playing a role in the use of cryptocurrencies? (@ZaferYellow4)

A5: For a long time, stablecoins have served as a haven in the crypto space amidst volatility and for intermediary value transfers. However, until now, the yield offered on stablecoins has mostly been volatile, requiring users to constantly readjust their positions. The first role Ledgity Yield will play is to provide stablecoin holders with a real and stable yield.

The yield on stablecoin is like an interest-bearing current account. It’s essential for the democratization of stablecoin usage in a healthy DeFi ecosystem and international value transfer. We can identify significant demand for stable yield in stablecoins from DAOs, Foundations, VCs, and more.

Thank you. Don’t forget to join us on Discord (https://discord.gg/ledgityyield) to help us build a leading protocol for yield on stablecoins. Also, mention that community members can participate in Zealy’s “Ledgity Game” campaign to win NFTs and much more.

TELEGRAM QUESTIONS

Q1: I think Legity Yield will be very beneficial for DeFi users. How can I invest in your project? Can you provide information about your token sale process and early investment opportunities?

A1: There won’t be any token sale (ICO, etc.), the only LDY tokens in existence will be those distributed through the DEX liquidity pool (300k $LDY tokens) and via the Arbitrum Lockdrop campaign. The selling pressure will be very low, so our Lockdrop campaign will be quite interesting for our early community members. So, the only way to get exposed to the growth of Ledgity Yield is actually to put some USDC into the Lockdrop campaign. But it’s limited to 5M USDC, so be quick! Join our Discord server to get notified when the Lockdrop starts https://discord.gg/ledgityyield

Q2: I’d like to know the benefits of holding $LTY tokens as a long-term investment. How will demand for $LTY tokens increase in the future? What steps are you taking to increase demand? Can you tell me how you plan to attract more partnerships to your project?

A2: I think this is one of the most important questions. The RWA portfolio backing the Ledgity Yield protocol consists of 4 buckets:

• 5% remains in stablecoins to provide instant withdrawal capability for users.
• 30% is allocated to short-term US Treasury bonds.
• 30% in short-term investment-grade and high-yield bonds.

Q3: Terra, also known as Luna coin, had the highest market cap project recently due to its high APR rates, and its collapse caused a revolution in the crypto market (in a bad way). What measures are you taking to avoid bad outcomes when adjusting these APR rates for stablecoins? (@serdarsst)

A3: That’s a good question. Terra Luna had a completely different mechanism, relying solely on the value of Luna Tokens, which was highly volatile. The Ledgity Yield protocol, on the other hand, provides a secure yield solution on stablecoins primarily because it relies on real-world assets. Bonds have been around for decades in TradFi. They represent the most significant asset class, representing trillions of dollars in the financial sector. For example, if you invest in bonds issued by the U.S. government, you can be assured of receiving your yield and capital. We are applying the same corporate standards as asset managers and investment funds in TradFi.

Q4: How exactly do L-Tokens function as “yield-bearing” tokens and what technical mechanisms allow them to earn yields without the need for traditional DeFi processes like staking or locking? (@tolgaozek)

A4: Hey, that’s a nice question about our innovative reward distribution system! In essence, LUSDC rewards are claimed right before someone is about to use them (in the same transaction). It’s a completely transparent process for users who think they don’t have to claim anything. It also eliminates the need for rebase mechanisms and allows for advanced functionalities like redirecting rewards. For example, enabling a DAO to redirect its rewards to another DAO, a parent redirecting rewards to their children’s wallets, etc.

Q5: Ledgity Yield platform, what risk management policies do you use to protect the stablecoins and loans provided by investors? (@zanioloricardo)

A5: We implement strict risk management policies regarding the management of the protocol treasury. The RWA portfolio backing the Ledgity Yield protocol consists of 4 buckets:

• 5% remains in stablecoins to provide instant withdrawal capability for users.
• 30% is allocated to short-term US Treasury bonds.
• 30% in short-term investment-grade and high-yield bonds.
• 30% in U.S. factoring. We also work with leading partners with a long history in TradFi. We monitor daily: default risk, liquidity risk, and rate risk. We can leverage over a decade of experience in fixed-income fund management.

Q6: You’ve launched Ledgity Yield on Arbitrum. Are you planning to implement Ledgity Yield on other ecosystems like BSC, ETH, and Polygon? (Erick || Community Manager (CM))

A6: We aim to cover as many stablecoin holders as possible. So yes, we do plan to expand the protocol to other networks (Hedera and Avalanche are planned) and as many stablecoins as possible. Currently, we support USDC on both Linea and Arbitrum, but we plan to support many more stablecoins in the future. EUROC stablecoin is next in line.

You can share your opinions in the comments about the topic. Also, follow us on Telegram, Twitter, and YouTube for more content like this.

The post Coin Engineer – Ledgity AMA Summary appeared first on Coin Engineer.