Coinbase Releases Statement on Terra LUNA

Coinbase’s Chief Legal Officer (CLO), Paul Grewal, has spoken out against the SEC’s $4.47 billion settlement with Do Kwon and Terraform Labs regarding Terra (LUNA).
The investigation into Terra (LUNA) that led to significant losses for cryptocurrency investors has finally concluded with the SEC reaching an agreement with Do Kwon and Terraform Labs. The settlement includes $3.58 billion in compensation and $420 million in penalties.
Grewal criticized the SEC’s approach to the case, highlighting that the settlement makes the SEC an unsecured creditor in the bankruptcy proceedings and only requires Kwon to surrender $7 million in assets. He expressed concern that the settlement does not provide meaningful assistance to the victims of Terra (LUNA).
In addition to Grewal, Zach Rynes, the community lead for Chainlink (LINK), also expressed dissatisfaction with the settlement, questioning why the funds are going to the SEC instead of compensating those affected by the collapse of Terra.