trial

At the heart of the Central American state of Honduras, a legal battle has erupted, centered around a dispute over a massive sum of $11 billion with the firm Próspera, responsible for the construction of a special economic zone on Roatán Island. This zone has quickly become a symbol of conflicts between modern technologies and traditional government regulations.
Economic Experts Rally Behind Honduras' Decision
Eighty-five economists have gathered to publicly express support for Honduras' decision to exit arbitration with the World Bank. This move is seen as a defense against claims by the American company Próspera Inc., which is demanding $10.8 billion in compensation for alleged interference in its cryptocurrency project on the island.
Roatán Island at the Center of the International Dispute
Próspera Inc. built a special economic zone on Roatán Island, which, due to its liberal regulations and support for cryptocurrencies, attracted significant attention. Conflict arose after the Honduran government changed legislation in 2022, leading to the demise of the island's special status and endangering the company's investments.
Economists Criticize Dependence on International Arbitration
In an open letter, economists argue that Honduras' withdrawal from international arbitration is a crucial step in protecting the country's sovereignty and democratic principles. They point out that mechanisms like ICSID often serve corporate interests at the expense of states and limit their regulatory capacity in the public interest.
Challenges Associated with Arbitration and International Support
Honduras faces ten cases in ICSID, with the most significant being the dispute with Próspera. President Xiomara Castro seeks to change legislation to better protect national interests and promote the country's economic development without relying on controversial foreign investments.
Próspera and Controversies Surrounding the Special Economic Zone
Próspera's special economic zone on Roatán Island has come under criticism not only due to its special status but also due to concerns from local communities about displacement and loss of control over their territory. Despite promises of development and innovation, the project has sparked discussions about the impact of such zones on the social and environmental aspects of life in the region.
The Future of Honduras and the Role of International Arbitration
As Honduras navigates these complex international waters, it raises questions about the place international arbitration should have in resolving disputes between states and corporations. This case serves as a reminder of the importance of a balanced approach to international investments and the need to protect national interests and sovereignty.
Honduras' Decision and Its Impact on Global Practice
Honduras' decision to exit the arbitration process with the World Bank could have far-reaching implications for the global practice of resolving disputes between states and multinational corporations. This move is seen by many experts as a challenge to the existing system, which often privileges the interests of large corporations at the expense of states and their citizens.
The Importance of Transparency and Public Interest
This dispute highlights the need for transparency and public engagement in decision-making on projects with significant impacts on communities and the environment. Companies like Próspera, as well as similar projects worldwide, must consider the impacts of their activities and ensure that local rights and wishes are respected.
A Call to the International Community
The Honduran case is also a challenge to the international community to reconsider how it supports and regulates international investments and ensures they align with sustainable development and the protection of human rights. It's crucial for international institutions and arbitrations to serve not only as tools to support corporate interests but also as instruments for achieving a fair and sustainable future for all.
The End of the Legal Battle?
Although it's still uncertain how the situation will unfold, Honduras stands on the verge of a significant precedent in international law. This case could influence how similar disputes are resolved in the future and how relationships between states and multinational corporations are shaped. Honduras, whose economy and politics are significantly influenced by the outcome of this battle, finds itself at the center of attention that transcends its borders and opens a discussion about the future of international economic relations and state sovereignty.
#crypto #Roatan #trial
 
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

* Terra founder Do Kwon's criminal trial has been set. Here's what you need to know about the $40 billion collapse of TerraUSD and LUNA.
The high-stakes trial of Terraform Labs co-founder Do Kwon is scheduled for January 26, 2026, in the U.S. District Court for the Southern District of New York. He'll spend the next year in federal jail, after his lawyers consented to his detention.
The trial, expected to last four to eight weeks, will address criminal fraud charges tied to the catastrophic $40 billion collapse of the TerraUSD (UST) stablecoin and its sister token LUNA in 2022.
This case is a culmination of international legal battles, financial ruin, and allegations of deceit that dismantled the promises that once captivated millions of crypto investors.
Do Kwon, who pleaded not guilty to the charges last week, has been accused of multiple counts of fraud, including securities fraud, wire fraud, and conspiracy to commit money laundering.
Prosecutors allege the Terra founder orchestrated schemes to manipulate markets, misrepresent the stability of Terraform’s products, and launder proceeds through Swiss bank accounts and other blockchains.
If convicted, the 33-year-old faces a maximum sentence of 130 years in prison.
In addition to the criminal charges, Kwon faces multiple civil lawsuits. In April 2024, a New York jury found Kwon liable for fraud in a case brought by the SEC.
Terraform Labs agreed to a $4.47 billion settlement with the SEC in June 2024. The Commodity Futures Trading Commission (CFTC) has also levied allegations against Kwon, compounding his legal challenges.
Speaking to Decrypt, Sid Powell, CEO & co-founder of Maple Finance, called the Terra ecosystem collapse a “wake-up call” for DeFi, or decentralized finance—a catch-all term that describes the various protocols and platforms built around automated, crypto-driven finance products.
“When it comes to regulatory effects, lawmakers began cracking down on DeFi protocols more aggressively,” said Powell. “Developers responded by prioritizing resilience and risk management, incorporating over-collateralization models and exploring hybrid mechanisms that combine algorithmic design with collateral.”
* How $40 billion was lost in days:
The collapse of Terraform Labs’ ecosystem in May 2022 remains one of the most devastating events in crypto history. It wiped out $40 billion in market value almost overnight.
Both UST and LUNA were designed to work together in a system that promised stability and high returns, but flaws in its design led to a catastrophic failure. UST’s stability relied on an algorithmic system where its value was maintained through a burn-and-mint mechanism with LUNA.
When UST traded below $1, users could burn UST to mint LUNA, reducing supply and restoring the peg. Conversely, when UST traded above $1, LUNA could be burned to mint more UST.
On May 6, 2022, a large UST selloff on Curve Finance caused the stablecoin to lose its dollar peg. Panic set in, leading to mass redemptions.
As UST’s value fell, the burn-and-mint mechanism drastically inflated LUNA’s supply, diluting its value. Within days, UST plummeted to $0.13, while LUNA’s price collapsed from $64 to fractions of a cent.
The algorithmic system failed to stabilize UST, triggering a death spiral that obliterated the ecosystem’s value and impacted more than a million estimated victims.
The collapse also rippled through the crypto sector, pushing several interconnected projects into bankruptcy and contributing to the eventual downfall of the FTX exchange.
There was also reinforced skepticism toward high-yield generating crypto projects (since the crash), prompting a shift in focus toward more sustainable projects,” Sei Labs co-founder Jayendra "Jay" Jog told Decrypt. “Trust in algorithmic stablecoins—seen as innovative but inherently risky—diminished, prompting investors to focus on fiat-backed stablecoins such as USDC and USDT.”
* Extradition tug-of-war:
Following the TerraUSD collapse, Kwon went on the run, evading international authorities. Kwon was arrested in Montenegro in March 2023 for attempting to travel with a forged passport.
Both the U.S. and South Korea sought his extradition. Montenegro’s courts initially ruled in favor of South Korea, but U.S. prosecutors ultimately secured his extradition in December 2024.
Upon his arrival in the U.S., Kwon appeared in court and agreed to remain in custody without bail.
The Terra crash exposed the vulnerabilities of algorithmic stablecoins and unregulated financial systems. Kwon now faces trial, which will serve as a litmus test for accountability in the largely unregulated crypto space.
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#DoKon #TerraTrial #Lawsuit #Blockchain #Trial $lunc $DOGE $LUNA
$PEPE

Over the course of nearly 30 hours of cross-examination, Craig Steven Wright, the Australian man who claims to be Bitcoin’s pseudonymous creator, #Satoshi Nakamoto, has been raked through the coals. The self-described computer scientist, economist, cryptographer, patent writer, author, lawyer, pastor, master of martial arts and mathematician (in other words: fabulist) has been accused of misrepresenting facts, told by the judge to stay on topic and silenced by his own lawyers.
For years, Wright has been harassing and threatening Bitcoin developers and users, filing libel suits and gag orders, after claiming ownership of the intellectual property behind the world’s first cryptocurrency. And it’s that “chilling effect,” that the nonprofit Crypto Open Patent Alliance (COPA) was trying to shut down when it filed suit in 2021 — the most aggressive attempt yet to settle once and for all that Wright is not what he says he is.
Jonathan Hough, COPA’s lead lawyer, argued in his opening statement that over the past eight years, ever since Wright came into the public eye, he has committed fraud on “an industrial scale.” During the cross-examination, which wrapped up Wednesday, Hough accused CSW of forging or manipulating documents related to the development of Bitcoin and misunderstanding the basics of the system Wright supposedly built.
That said, the burden is on the plaintiffs to prove Wright is wrong. And Wright, who has been described as (largely) calm and articulate in the courtroom, certainly has convinced people in the past (including his benefactor, billionaire online gambling magnate Calvin Ayre). For many onlookers, however, the case has already been made: Wright, by taking the stand, simply discredited himself. There have been too many inconsistencies, too many happenstances and too much misdirection to be believed.
The #trial is expected to go until mid-March. For now, CoinDesk has collected some of the most bizarre, asinine and head scratching moments from the case so far.
The 'unusual features of Dr. Wright’s behavior'
The opening statement from Wright’s lawyers, given by Lord Anthony Grabiner, was almost an indictment in itself. Put in the tough position of explaining Wright’s reluctance to show how he can interact with any of the millions of Bitcoin linked to Satoshi (thus easily proving his right to the Satoshi mantle), Grabiner said it was down to “philosophical differences.” Apparently Wright’s “unusual” behavior of flip flopping on whether to sign a transaction, as he pledged to do in 2016, would conflict with Wright’s “core belief” in privacy. Putting aside that Wright lives a very public life, Wright has also criticized the pseudonymous aspects of crypto, saying it’s part of the reason Bitcoin has become a hotbed for crime.

#Computer science 101
Wright, who claims to be working towards five PhDs, apparently does not know the very basics of coding. During a cross-examination by Alexander Gunning KC asking about PGP keys and cryptography, Wright was asked about “unsigned integers,” (used essentially to determine whether a string of data will have a + or – prefix), and wasn’t able to. Longtime crypto advocate Michael Parenti noted the unsigned integer function was used over 500 times in the original Bitcoin source code. What was meant to be a routine line of questioning to enter basic facts into the record about the Bitcoin source code may be the single moment remembered for years to come.
As bitnorbert, who has been following the trial, said on X’:
“HE COULDN'T EXPLAIN WHAT AN UNSIGNED INTEGER IS.
“If you're not a programmer, perhaps you don't appreciate what a basic thing this is. An average first-semester computer science student should be able to explain this. The judge, with his computer science background, certainly can. This is like having someone who says they're a mathematician not being able to explain what multiplication is.”

Weird insecurities
Wright likes to make himself out to be a workaholic. At one point in the trial he said he has written three patents so far that week, during lunchtimes — on Feb. 13 alone he “wrote two papers.” Thankfully, he has given the courtroom a little insight into what drives him to work tirelessly.
“I keep being told by other people what I can and cannot do. I keep being told I am useless by others. This is one of the reasons I keep getting all these degrees,” he said on the last day of his cross-examination.
If you were thinking that Satoshi Nakamoto created Bitcoin in an attempt to better the world, think again. It turns out that he actually had a huge chip on his shoulder and an emptiness inside.

Why lie?
In 2020, Wright published a blog titled “As an Autistic Savant…” that made the case that he was telling the truth about inventing Bitcoin because he had Aspergers (a diagnosis that was retired from the Psychiatric Association's Diagnostic and Statistical Manual of Mental Disorders in 2013).
“Lying is not something I do easily or well, and my behavior is not a mark of deception but rather normal for autistic individuals. I am brutally honest, but also incredibly precise,” he said.
It’d be too much to list every inconsistency brought up in the trial — the main strategy of the COPA legal team has been to force Wright to account for the hundreds of indications of forgery and manipulation found by a forensic evidence expert in emails, documents and computer files submitted into evidence.
But to take just two striking examples where he wasn’t exactly “precise” with his language, at one point Wright claimed he did not have a Reddit account and has never used the popular message board site. Well, here’s his account.
Wright also said he faked Satoshi’s PGP key, perhaps mistakenly.

Master manipulator
Relatedly, Wright denies forging or plagiarizing any of the documents submitted into evidence. He has blamed hacks, faulty internet connections and a grand conspiracy of people trying to “frame” him as a liar for some of the inconsistencies brought — like metadata that shows documents pertaining to the creation of #Bitcoin‬ were made using Word 2015.
On the opening day of the case, Judge Mellor acknowledged the allegations of forged documents and told Wright he “should consider himself extremely lucky” to argue his case, given the circumstances.
When asked by Mellor on Wednesday to produce a single document related to early Bitcoin files that doesn’t show signs of tampering, Wright said they would be unavailable. Plus, he argued, it couldn’t possibly be him manipulating the documents, because if it were, he wouldn’t have gotten caught.

It is time for a federal judge to decide on the length of the sentence for Sam Bankman-Fried, the founder of FTX. Both the defense and the U.S. Department of Justice have presented their arguments, as well as statements from FTX creditors and close friends and family of Bankman-Fried.
Emotional Impact on Both Sides
Prosecution and defense representatives have now provided their perspectives on the sentence to the judge, including emotional arguments gleaned from letters from people associated with FTX and Bankman-Fried. The key question is whether Sam Bankman-Fried should be sentenced to decades in prison, as the U.S. Department of Justice desires, or if his punishment should be more lenient, as suggested by the defense.
Consideration of Evidence and Behavior
Judge Lewis Kaplan will have to consider various factors, including letters from Bankman-Fried's family, former FTX employees, and former customers. These materials offer insight into the impact of FTX's collapse on its customers and on Bankman-Fried himself.
Arguments For and Against Severe Punishment
While the defense argues that Bankman-Fried faces enormous personal consequences and should not be harshly punished, the Department of Justice emphasizes his deliberate violation of the law and doubts about his efforts to remedy the damage.
Impact on FTX Victims
In statements about the impact on victims submitted by the Department of Justice, former FTX customers describe how the exchange's collapse affected their finances and lives. These statements reveal how deeply FTX's collapse affected the lives of many people.
Technical vs. Emotional Compensation
While the defense claims that FTX customers will be fully compensated after the bankruptcy proceedings, several creditors point out that they will only receive the value of their cryptocurrencies as of November 2022, not the potential profits they could have had. The letters also state that refunding the funds will not compensate for the time when customers did not have access to them.
Judge's Decision
Among other factors likely to be considered by Judge Kaplan are Bankman-Fried's behavior during the process, testimonies, and the possibility that he could again violate the law. The defense emphasizes that the government is trying to break Bankman-Fried and warns against a punishment that is too harsh, which would abuse him even if he could theoretically commit fraud again.
Sentencing Date
Sam Bankman-Fried is scheduled to be sentenced on March 28, and the judge's decision will be a pivotal moment not only for him, but also for his family.
#SBF #trial #crime #crypto

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

In a significant development, Montenegro's High Court of Podgorica has approved the extradition of Terra founder Do Kwon to the United States, marking a pivotal moment in the legal challenges facing the cryptocurrency entrepreneur. This decision comes after months of legal wrangling and deliberations between Montenegrin courts, setting a precedent in the international legal process involving high-profile figures in the cryptocurrency industry.
Do Kwon, known for his role in the Terraform Labs saga, has been at the center of a complex legal battle spanning several jurisdictions. The Montenegrin court's decision rejects a competing extradition request from South Korea, where Kwon is also wanted for criminal prosecution. This decision was influenced by the European Convention on Extradition and Montenegrin Law on International Legal Assistance, as argued by Kwon's defense attorney, Goran Rodić.
However, the case's undertones suggest a political dimension to the extradition decision. Justice Minister Andrej Milović has hinted at the influence of a bilateral extradition agreement between the U.S. and Montenegro, suggesting that diplomatic considerations have played a significant role in the process.
The court's ruling follows a victory for Do Kwon in the Court of Appeals on February 8, where his extradition was initially revoked and the case was sent back to the High Court for further review. This legal victory has paved the way for his extradition to the U.S., where he is expected to attend the SEC v. Terraform Labs case. The U.S. authorities now have a window of nearly two months to complete the extradition process.
The SEC v. Terraform Labs case, which has been delayed until April 15 following a request from Kwon and an agreement with the SEC, accuses Kwon and his company of defrauding investors and customers in the aftermath of Terra's ecosystem collapse. This case is part of a broader investigation into Terra's operations, which have come under scrutiny in South Korea as well. A former company developer's testimony that Kwon was aware of legal issues with his project has added to the controversy surrounding Terra.
Furthermore, South Korean authorities have successfully secured extradition rights for Kwon's former chief financial officer, Han Chang-Joon, who was extradited on February 5. The specifics of the charges against Chang-Joon and the timeline for his arraignment remain unclear, adding another layer of complexity to the unfolding legal drama.
The extradition of Do Kwon to the U.S. signifies a crucial development in the global crackdown on cryptocurrency fraud and highlights the challenges of navigating international law in the digital age. As the legal proceedings against Kwon and his associates unfold, the case is expected to set important precedents for the cryptocurrency industry and international extradition practices.
#SEC #Terraform #trial

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Yuga Labs Prevails Over Ryder Ripps and Jeremy Cahen, Resulting in a $9 Million Payout
In a recent legal battle, a judge ruled in favor of Yuga Labs over artists Ryder Ripps and Jeremy Cahen. The judge decided to dismiss the claims made by both artists and ordered them to pay nearly $9 million in compensation to the digital collectibles company.
The dispute arose after Ripps and Cahen created unauthorized versions of tokens from the Bored Ape Yacht Club (BAYC), a project by Yuga Labs. This unauthorized collection, known as Ryder Ripps BAYC (RR/BAYC), was introduced to the market in May 2022.
The outcome of this legal battle meant that Ripps and Cahen were required to pay Yuga Labs a total of $1.57 million in compensation and legal fees. The court thus closed this case.
However, a recent court decision rejected new claims filed by Ripps and Cahen against Yuga Labs. This time, they were ordered to pay nearly $9 million, which includes fees for lawyers, expert witnesses, and degorgement (the return of wrongfully obtained profits).
They were also instructed to relinquish all RR/BAYC NFTs they own. The court mandated, "If the defendants own any RR/BAYC NFTs, they must destroy (e.g., 'burn') the NFTs or provide them to Yuga for burning."
Jeremy Cahen, also known as Pauly, announced to his 174,100 followers on X that they intend to appeal this decision to the Ninth Circuit Court in California.

Ripps and Cahen also filed counterclaims against Yuga Labs, alleging that Yuga Labs intentionally caused emotional distress and negligently caused emotional distress, while also seeking a declaration of no defamation.
However, the judge dismissed Yuga Labs' first and third counterclaims against Ripps and Cahen, which pertained to false origin designation and kybersquatting, while simultaneously imposing a substantial fine. Additionally, Ripps and Cahen were required to surrender all social media accounts associated with RR/BAYC NFTs and the smart contract. The court filing stated, "The defendants shall destroy any and all other materials infringing copyrights, including NFTs, articles, documents, software, promotional items, or advertisements owned or controlled using any BAYC trademark."
#NFT #crypto #trial

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

 

Sam Bankman-Fried, the founder and former CEO of a cryptocurrency company, is facing another court hearing after being found guilty of seven criminal charges on November 3rd. His sentencing is expected to be announced in March.
Legal Representation Review for SBF
Sam Bankman-Fried, also known as SBF, is set to appear before a judge to discuss potential conflicts of interest in his legal team. This will be his first court appearance since being convicted in his first criminal trial.
Legal Representation Concerns
On February 7th, Judge Lewis Kaplan of the United States District Court for the Southern District of New York ordered Bankman-Fried to personally attend a hearing on February 21st. This order stems from concerns regarding his lawyers, Marc Mukasey and Torrey Young, and possible conflicts of interest.
 

Reasons for the Hearing and Conflicts of Interest
The hearing was initiated based on a letter from U.S. prosecutors on February 6th, which expressed concerns about SBF's legal representation and its relationship to other cases. Specifically, the connection between FTX and Alameda Research companies and potential conflicts within legal representation were emphasized.
Next Steps and Legal Proceedings
The judge may require Bankman-Fried and other involved parties, such as the former CEO of Celsius, Alex Mashinsky, to state whether they waive their right to conflict-free representation. No similar hearing for Mashinsky's case has been announced yet. The criminal trial against Mashinsky is scheduled for September.
Previous Crimes and Future Proceedings
Bankman-Fried was arrested in the Bahamas after the collapse of FTX in November 2022 and charged with a series of criminal offenses. He was found guilty in the first trial and awaits sentencing in March. Reports suggest that a second trial may not be necessary given his current situation.
Current State of SBF
Since his conviction, SBF remains in the Brooklyn Detention Center, largely isolated from court proceedings while his lawyers handle various motions and delays. According to available information, SBF exchanges mackerel packets for services rather than cryptocurrency, indicating his adaptation to prison life.
 #trial #FTX #SBF
 
 
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
 

In a recent twist in the ongoing COPA v. Craig Wright trial, Craig Wright, the man who has long claimed to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin, has admitted to forging key documents in his bid to substantiate his claim. This admission came on the fourth day of the trial, marking a significant moment in the legal proceedings.
Wright's claim has been a subject of controversy and speculation within the cryptocurrency community for years. The trial, which has been closely watched by both supporters and skeptics, took an unexpected turn when Wright conceded that many of the documents he had presented as evidence were indeed forged. This admission came after COPA, the plaintiff in this case, highlighted various anachronisms in the documents, including the use of fonts that were not available at the time the documents were supposedly created.
In an attempt to explain the inauthenticity of the documents, Wright pointed fingers at several third parties. He blamed mistakes made by his former solicitors, sabotage by ex-employees, hackers who compromised his systems, and even claimed that the IT environment could autonomously alter documents. This defense, however, places Wright, who claims to be an information security expert, in a dubious light.
Adding to the complications, Wright was unable to confirm the authenticity of documents related to the so-called Tulip Trust, which had been previously submitted in the U.S. Kleiman litigation. “I have no idea, and I cannot actually vouch for anything being completely real,” Wright stated, inadvertently supporting COPA’s argument against him.
Despite this setback, Wright had a moment of triumph in the trial when he effectively explained Bitcoin’s network theory and presented a 2008 document mentioning Bitcoin Cash—a cryptocurrency that was not launched until 2017. This move caused some concern for COPA, though it also raised questions about Wright's ability to alter document metadata, a skill he admitted to teaching his university students.
As the trial continues until mid-March, the cryptocurrency community watches with bated breath. The outcome of this case could potentially put to rest one of the longest-standing claims to the creation of Bitcoin. Whether or not the court will dismiss Wright's claim remains to be seen, but this development certainly casts a shadow over his assertions of being the digital currency's originator.
$BTC
#Satoshi #Bitcoin #trial #COPA

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“