Terraform Labs and Co-Founder Do Kwon
Terraform Labs, Do Kwon convicted of fraud by New York jury
Terraform Labs and Co-Founder Do Kwon have been found guilty by a New York jury of deceiving investors regarding the stability of UST, Terra’s stablecoin.
The collapse of UST in 2022 resulted in a staggering $40 billion loss for investors and reverberated throughout the cryptocurrency sector.
The verdict, reached after a two-week trial, represents a significant victory for the SEC in its efforts to enhance oversight of the digital currency landscape.
This ruling may foreshadow the outcomes of impending criminal proceedings against Kwon in both the United States and South Korea, where the legal standards for establishing guilt are notably stringent.
Kwon, who holds a controlling stake of 92% in Terraform, was apprehended in Montenegro for possessing a counterfeit passport and faces potential extradition to either the U.S. or South Korea, both of which have levied criminal fraud charges against him.
The likelihood of Kwon’s extradition has increased following a recent decision by Montenegro’s Supreme Court, which challenged prior rulings favouring his transfer to Seoul.
After less than two hours of deliberation, the jury determined that Kwon and his company disseminated false information regarding using Terraform’s blockchain technology by Chai, a popular payment application in Korea.
The verdict also highlighted instances of misleading information concerning the stability of the UST stablecoin, which purportedly maintained a consistent value pegged to the US dollar through algorithmic mechanisms.
Nigerian policymakers urged to address AI’s impact on employment amid rising unemployment Rate
As concerns grow over the potential displacement of jobs by Artificial Intelligence (AI) globally, Nigeria is urged to devise practical policies to mitigate the consequences of this technology on employment.
The urgent need for such policies arises amidst Nigerian businesses’ increasing adoption of AI, raising fears that the country’s unemployment crisis could worsen with the continued evolution of AI.
This call for action was a vital resolution of the 2024 Company Secretaries and Registrars’ Forum, held on Thursday to discuss the impact of AI and cybersecurity on capital market operations.
The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) organised the forum to address potential job losses resulting from AI adoption through policy interventions.
Speakers at the forum highlighted the necessity of regulating AI operations to ensure that all relevant factors, including employment considerations, are adequately addressed.
They stressed that while AI offers significant benefits, its unchecked proliferation could adversely affect employment if not correctly managed.
Funmi Ekundayo, President of ICSAN, underscored the need for dedicated agencies or mechanisms to focus solely on AI-related issues within the framework of existing data protection laws.
She emphasised that the forum theme, “The Implications of Artificial Intelligence and Cybersecurity to Capital Market Operations,” was chosen due to its critical relevance to governance practices, particularly within the capital market.
Addressing cybersecurity concerns, Simon Araronu, Executive Director at the Bank of Industry, emphasised the transformative impact of AI on capital market operations globally.
While acknowledging AI’s potential benefits, he cautioned against the growing threat of cyber attacks, which could undermine financial performance and investor trust.
During panel discussions, speakers emphasised the importance of ethical considerations and regulatory frameworks to safeguard societal values and economic stability.
Hitender Mehta, providing insights from the Indian perspective, highlighted the effectiveness of AI regulations in mitigating losses and ensuring rapid recovery in the event of cybersecurity breaches.